Entrepreneurs’choice: risk or status quo ?

How well can entrepreneurs do if they take or don’t take risk? What can affect their decision making? Is it their experience ?Is it emotions?  what about the quality of decision making ? do they always make the right decisions?  How can an entrepreneurs improve their decision making ? Is it ok to make mistakes ? In this post I will focus on risk taking and status quo bias. The rest of questions posed earlier regarding the quality and improvement of decision making will be discussed in another post.

What does status quo mean ?

In marketing and economic psychology researchers use the term “status quo bias”. What does it mean anyway? It means (for entrepreneurs) to accept,do or follow the same choices that have been done or chosen before without changing anything. Entrepreneurs have been studied in research whether they fall under this phenomenon (status quo bias) or not. Well it appears that there are all types. Some small business owners prefer the status quo and don’t like to take risk (risk averse), while others take risk. The degree of risk also varies.Studies showed that small business entrepreneurs take more risk than big business owners or bankers. Entrepreneurs are also known of their use of heuristics and rely on their experience which researchers consider a type of status quo because they rely on their past experience. So in order for the entrepreneur to be status quo-free he/she must always be opened to new ideas and be willing to share with fresh minds.

What makes entrepreneurs take risk ?

Entrepreneurs are always optimists and enthusiastic  to explore and discover new opportunities, find new technologies, to expand and grow & to be creative and build innovation. Sometime entrepreneurs appear to be over confident in their decision making , but confidence can be useful in some occasions.

Is it ok to make mistakes ?

“ A person who never made a mistake never tried anything new ” Albert Einstein.

The entrepreneurial tip of the day: Learn to take risk but above all, master the craft of managing risk.

Tags: Arab Entrepreneur, Entrepreneurial resources, Entrepreneurial Tools, Kuwaiti Entrepreneur, online entrepreneur tools, risk taking, status quo bias

Olderpreneurs

This site is dedicated to help entrepreneurs around the world. It doesn’t matter if you are young or old entrepreneur, its never too late. Talking about old entrepreneurs who are older than 50 years old, I came across a new terminology to describe them : Olderpreneurs ! I first heard the term while I was driving back from the computer labs at Bangor University at midnight few days ago. I was working on an essay “Are German banks riskiers than European competitors ?” with my friends, gladly We finished it today and submitted it. That day I was listening to BBC radio , and I heard a couple of English people talking about olderpreneurs and olderpreneurship, that gave me a wake-up call trigger. They were talking about success stories for olderpreneurs, and funding programs that they can use. I guess the term “olderpreneurs” is only used in UK, thats what google said. The British papers also highlighted that, according to the Guardian. I also found an interesting wiki website called Wikipreneurship that specilizes in Entrepreneurship which also highlighted olderpreneurship. The amazing fact that I discovered  according to the Guardian : is that success rate at establishing start ups at older age seems to be better than youngsters. They justified that by experience- older people have more experience and better skills. I totally agree with that, experience is an important factor, but what matter most is MOTIVATION. I have seen successful people from all ages, and they are all motivated leaders. The trend according to a UK research shows that the number of olderpreneurs are increasing in UK, interesting and I hopefully see it around the world.

Tags: Bangor university, Entrepreneur, Entrepreneur uk, Entrepreneurship, olderpreneurs, olderpreneurship, Wikipreneurship