1.1.2 Risk and Reward Flashcards
Business
failure
If a business fails to plan for the
future it may risk losing out to
competitors
What is the chance of failure in
a new start-up?
20% of small businesses fail in their
first year
30% of small business fail in their
second year
50% of small businesses fail after five
years in business
70% of small business owners fail in
their 10th year in business.
Financial risks
Starting a business can be a
financial risk for the owner
Lack of security
If an entrepreneur has a
regular job, and they decide
to leave that job to open
their own business this is a
huge risk
Business success
The rewards of a good
business is success
Keep all the profit
Profit = Total revenue – Total
costs
Independence
A reward of setting up your own business is that you could be your
own boss
*Risk
business failure, financial loss, lack of security
reward
business success, profit, independence
