Entrepreneurship for Kids™
By Galit Zamler
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The Ability to Take Calculated Risks
By Galit Zamler

The Ability to Take Calculated Risks

In order for someone to stand up and proactive something, he has to take a risk, but unlike gamble, the risk is a calculated risk.

Starting a business at an elderly age

We can find ourselves forced to take risks, even if we succeeded to avoid them all our life.

Taking a risk in starting a new business, especially at an elderly age, when the entrepreneur has the responsibility to provide for his family, is getting more complex.

In our time, in Israel and across the globe, people aged 45+ often find themselves unable to get hired as employees, and as a result, they are forced to set up their own business.

Here the ability to analyze risks and assess the probability of success against the chances of failure is extremely important.

In March 2016 an article in Globes was published under the headline: the next poor people are ex-high tech. They open up a business, took out all their savings and got left with nothing.

Business at an elderly age

This article illustrates how important it is that everyone, even those who now feels safe in their workplace, should learn the business development process, preparation of a business and marketing plan, feasibility study and risk assessment.

A more prepared a person is when arriving at this stage life, which he is setting up a business, and nowadays sooner or later many needs to re- calculate their route, it will increase his chances of success, and will consider a mix of factors both personal and environmental in the profitability of an enterprise.

In one entrepreneur classes, Galit Zamler gave in schools, one of the students told about her grandfather, who after years working as an employee, retired, and decided to invest his savings in setting up an electronics business.

According to her, her grandfather had to close his business after six months, and all his savings went down with it. Today, her father, which is the son of that grandfather, has to support his stone broke father financially.

The conclusion of that student was that it's not worth being an entrepreneur. She ended up with this conclusion after seeing that failure experience from close.

But the conclusion is different, the entrepreneurship is a blessing, it enables people to see their full potential, and feel satisfaction, due it also involves risks, and we must take under consideration that the enterprise might fail, especially when statistic shows that most enterprises fail.

Once we take into consideration that the project may fail, we will now take calculated risks, risks that we can take even if we fail.

While there are people willing to risk everything, and those who succeed, but a man needs to see the big picture in mind and only then make a decision.

Taking risks and decisions

The Entrepreneur:

The entrepreneur, just by the decision to establish an enterprise, he's taking a risk. However, unlike a bet that the entrepreneur's ability to influence the outcome is zero, then when an entrepreneur takes risks in setting up an enterprise, he calculates his chances to succeed or fail and choose from a discretionary to continue with the dream and work for its success.

The entrepreneur operates in a changing environment and sometimes he has to make decisions quickly, under pressure, so he does not stick to what he already knows, but ready to change when necessary, and to understand that sometimes investments should be discarded in favor of better new directions. These are often painful decisions, and the entrepreneur knows how to make such decisions.

An example of an entrepreneur:

The Israeli entrepreneur Stef Wertheimer in his book The Habit of Labor, says about the beginning of his road:

It was a difficult decision to leave a steady job, a decision that involves giving up a safe salary and high status and back to manual labor, next to the machine - and all as a first step in the realization of a dream, which seemed so entirely imaginary. But that didn't deter me.

Yossi Yassur in his book Did you also have no hot water? A guide to preventing failures in decision-making writes:

Taking risks is the act which an uncertain affirmative decision with a headlight high income over a certain decision with a headlight of low income.

In business and in life in general: taking risks is essential to success. But taking risks isn't a gamble. Taking risks is an act which affirmative decision uncertain headlight high income over a certain decision headlight on a low income.

The resulting decision is a gamble against the odds while taking risk is a decision that goes with odds.

In a meeting that deals with innovation and brainstorming risk of the Entrepreneurship for Kids Program, the children learn that invention alone is not innovation, and that there is a connection between innovation and risk, it's not a gamble, it's a calculated risk.

calculated risk