Want to gain an insight into some of the risks of entrepreneurship? Here is an exert from a conversation between Professor Jaideep Prabhu and Ritchie Mehta as they talk about some of the risks involved with starting and running an entrepreneurial venture.
The balance of risk has ultimately shifted. Now you talked about in your research, you know, maybe a decade ago, big R and D budgets and that's kind of fallen away. So what's then happened is it's moved to an ecosystem of innovation, right? But as a consequence to that, the risk of failure, the risk of spending too much, all those risks get pushed down to the lowest denominator. And that actually becomes quite tricky for the number of businesses that won't succeed in the future.
And also I think it's very important you're highlighting it because there's a kind of tendency, I think to glamorize entrepreneurship. And there's no doubt that entrepreneurship is very attractive and it's possible. You know, there are many things you can do, but there are many risks. And we should also highlight the risks. I mean, because it's become easy for small teams to do stuff. You have more of them. So there's more competition and the big companies still have the power and can pick and choose. And when there's more competition, they have more choice and they can be more choosy. So I think you're absolutely right. It has become easier to be entrepreneurial. You have some amazing startups with great ideas, some of which scale on their own without help from others because it's such a great idea. But there are a lot of failures and the failure rate is high and there are real reasons why, you know, being an entrepreneur is risky.