Entrepreneurship and risk management
Posted in Links on September 24th, 2009 by Sacha PeterAnthony makes a great post about how entrepreneurs seek to be risk-minimizers. I distinctly recall him making this point to me in person a couple years back, and I still remember his comments to this day. It is good to see it in writing, just in case if I get old and senile.
My two cents on the matter is that most people that (unsuccessfully) get in business for themselves get in trouble with capital assets – they tend to be involved in businesses that are capital intensive (e.g. restaurants) and the ability to convert the fixed asset infrastructure into cash flows is not as easy as it seems on paper, as it requires a lot of operational expertise to be able to do so.