Personal orientation to risk and uncertainty
Risk is the uncertainty of a given outcome and will be explored further in Chapter 5 in relation to opportunity assessment. People have markedly different orientations to risk- taking in business. We should not accept the popular stereotype of 'entrepreneur as risk-taker' vyithout exploring the issue of risk in opportunity selection more carefully. Contextual learning can be seen as a means of reducing risk. Mike, for example, took what others saw as a big risk in leaving his job to start a radio station but his career experience had provided him with the confidence to know 'what worked' in building a successful commercial radio business. The negotiated enterprise also plays a role in risk reduction, as in many ventures the entrepreneur or entrepreneurial team do not carry the entire risk, as other investors or partners share the exposure to the business success or failure. However that still leaves the issue of personal exposure to risk.