Common Risks in Entrepreneurial Companies
Anneke Zwart, Student (University), Netherlands, Moderator
Although every organization has to deal with a set of risks that are specific to the situation the company is working with, there are four risk categories that are common to basically all entrepreneurial companies. These common risk categories in entrepeneurial companies are the following:
1. Consumer Demand Risk: This risk refers to the difficulty to predict consumer demands and therefore the risk of producing products that do not match consumer demands. For example, before the Apple iPod was introduced, there did not exist any product that enabled taking your entire entertainment collection with you. Therefore, forecasting the demand for Apple iPod was hard.
2. Product and Technology Development Risk: This risk refers to the risk that exist within the process of developing a certain product/technology from a concept to a commercial good. Many great inventions begin with making big promises but fail to become successful, because of this risk. It is ...