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Definition

Moderate Risk Takers

Moderate risk takers are those entrepreneurs who are often characterized as willing to assume a moderate amount of risk in business, being neither overly conservative nor likely to gamble.

The idea that entrepreneurs are moderate risk takers originates from two sources. First, entrepreneurs typically have jobs that are less structured, and so they face a more uncertain set of possibilities than managers or rank-and-file employees. Second, many entrepreneurs have a strong need to achieve and often set challenging goals, a behavior that is sometimes equated with risk-taking.

Taking moderate risks is absolutely necessary for a business. Obviously, effort, money, and time are at stake when an entrepreneur takes the risk, but until s/he does not stretch her/his limit and let matters take its time, it is quite tough to expand her/his business and grow in her/his career. For example, working for a project without taking payment in advance- is the most common thing that most businesses do to win customers.

The entrepreneurs who are successful are moderate risk takers. They spend mentionable time studying and calculating before going for the risk. They don’t stay away from uncertainty if they trust that there is a potential opportunity.

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