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  • Writer's pictureAdil Malia

Entrepreneural Risk-taking at risk

Successive Generations of Entrepreneurs, over a period of time, tend to lose their cutting. edge advantage over 'Risk Taking Ability', which otherwise had been their critical factor of earlier success. The classical Poker Syndrome kicks in... If they begin losing, they do not mind losing all. They tend to fund their risk ventures even beyond their available funding sources thru mortgages, loans, overdrafts, other borrowing etc.  However, if they experience success initially, the chances of their placing smaller and smaller units of bet sizes at risks, is a higher probability. Risk aversion enters as a factor of evaluation before decision. That is when the hypothesis - why risk our past earnings or why not protect the things we already have rather than risk it and lose, sets-in. 

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