Literature Review: New Business Trends, Entrepreneurship & Risk

This literature review explores the evolving landscape of business development services, focusing on the interplay between entrepreneurship and business risk. It highlights the significance of micro, small, and medium enterprises in driving economic growth and the critical role of business development service providers in enhancing their operational capabilities. The paper delves into the concept of entrepreneurship, emphasizing risk-taking, innovation, and decision-making, while also examining the various facets of business risk, including price risks, credit risks, and the challenges posed by uncertainty. It further investigates entrepreneurial risk, underscoring the need for entrepreneurs to assess, manage, and monitor business opportunities and risks effectively. The review concludes by emphasizing that failures in business operations are often attributed to misjudgments, inadequate risk management, and evolving corporate governance requirements.

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NEW BUSINESS TRENDS: ENTREPRENEURSHIP ALONG WITH BUSINESS RISK
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New business trends: Entrepreneurship along with Business Risk 2
Abstract
This literature research paper reflects the underdeveloped nature of business development
services providers along with trends of changing markets from public and private business
development services. The paper concentrates on determining entrepreneurship and risks
involved in the business operations. This examination printed material looks at the investigation
writing to comprehend the current alongside rising patterns concerning the part of
administrations of business improvement suppliers in the execution of miniaturized scale, little,
alongside medium ventures. The primary target of this paperwork is to explore knowledge along
with understanding on the subject matter along with the provision of the theoretical background
and understanding of the survey.
Introduction
It is evident from various surveys that micro, small, along with medium enterprises
account for at least sixty percent of the total jobs around the society. Therefore, such enterprises
pose the fundamental influence on the growth of the economy of different countries. The
availability together with access to business development services providers tend to be vital for
the micro, small and medium enterprises to be able to learn and acquire advanced understanding
in relation to operations, marketing, management, advancement in technology, resourcing, and
innovation. Therefore, it is important that the desk review is made on past investigation that
focuses on the topic of the risk-taking propensity amongst entrepreneur (Petrakis 2014, p. 89).
Besides, the literature reviewed will comprise of some relevant studies that had been done in the
past specifically those that relate to the issue of investigation. Additionally, investigations related
to the general concern of entrepreneurship will also receive effective review to shed additional

New business trends: Entrepreneurship along with Business Risk 3
insight on the matter of study. This investigation commences with the examination of the
concept of entrepreneurship with special references to the process of the entrepreneurial process
along with how entrepreneurs play their function in the process. The examination is then
followed by the examination of risk as well as its usefulness to the global economy.
Objectives of the project
The principal objective of this research paperwork is to examine the entrepreneur risks involved
in operation of different businesses around global society.
Other specific objective include
i. To investigate causes of entrepreneurship risks
ii. To examine how to control cases of risk occurrences in business marketplaces
iii. To investigate risk taking propensity in entrepreneurship
Scope of the research
It targets to examine different entrepreneurship processes that continue to be the same and the
functions. The paperwork aim at examining the nature of entrepreneur that is universal regardless
of business operations. Besides, it concentrates on illustrating how presence of hereditary risks
exists in every process that commences from the ideation, creation of enterprise,
conceptualization, commercialization, together with ending with the development of the
enterprise. Furthermore, it concentrates on illustrating how all business operations around the
world face risk within their activities regardless of its size. The focus of the paper largely focus
on illustrating how business operators have to identify, manage, assess, and monitor the business
opportunities and risks of organizations. It remains to be a wide survey that illustrates how
disappointments in the current business operations are always caused by misjudgments,

New business trends: Entrepreneurship along with Business Risk 4
management of risk, along with changes in corporate requirements of governance. There are also
increasing expectations of stakeholder for entrepreneurs to efficiently manage all risks that occur
within the organization.
Entrepreneurship
Entrepreneurship remains to be the process that is universally linked with the founding of
ventures of business by acquiring or expanding the existing operations of the business.
Entrepreneurs have been considered as bearers for risks along with uncertainties in process of
making choices of business. Entrepreneurship helps in making innovations for advanced goods,
advanced approaches to production, the new marketplace, and new kinds of industrial
organizations. Lawless (2012, p. 1230) concurred those entrepreneurs tend to assumed risk with
the intention to improve operations of the business. Besides, Fourati et al., (2017, p. 1049) was
able to recognize entrepreneur to be the manager or business owner who is not employed
elsewhere in marketplaces. Furthermore, Nitani and Riding (2014, p. 257)described the
entrepreneur to be the manager of any business who has the function of making decisions and
taking different responsibility as the decision maker while taking responsibility for the attained
decisions. Therefore, from the above definitions, many researchers can be capable to conclude of
the micro, small and medium enterprises where they may not be the founder but not only consist
of responsibility in process of attaining decision and but also takes the responsibility together
with risk for the decision reached.
Endeavors of entrepreneurship comprise of the process of gathering of productive
resources in the attempt to start the business operations with the expectation with the expectation
of offering the reasonable income to the entrepreneurship or operators of the small business.

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These resources comprise of manpower, devices, time, money, and fundamental raw materials
that may comprise of some risks in procuring resources. For instance, the risk in the business of
not attaining basic raw materials as required to producing the ideal product or damage to the
equipment as well as devices means losses to the entrepreneur (Miles 2014, p. 14). The available
risk with associated risk needs to be recognized and managed to help in cases of minimizing
losses and to improve revenues.
Micro, small, and medium enterprises
These enterprises are and will stay to be the backbone of economic progress around the
global society. Without any doubt, micro, small, as well as medium companies contribute largely
to the strength of the economy of most nations. Therefore, the definition of micro, small, as well
as medium-sized enterprises need to be grouped within the context of the nation in which they
perform their functions, but their functions vary according to the region of operation. Schwartz et
al., (2013, p. 1583) defined micro, small, together with medium-sized enterprises in marketplaces
to be the firm that is capable of employing one hundred and fifty full-time employees with
production sales turnover of at most twenty-five million dollars. The definition of these
enterprises covers the process of manufacturing that comprise of service deliveries, primary
agriculture, agro-based activities, and advancement in technology usage among other factors.
The risk in business operations
Risk has become common in the field of economies from early days of the 1920s. It
started to be the major area of focus in the learning discipline to note it cause and how to control
and eliminate it in the business sector. Therefore, the definition of risk in business operations has
been extended within the sector that deals with the process of making decisions by use of several

New business trends: Entrepreneurship along with Business Risk 6
kinds of literature in the field of management, insurance, environmental, along with psychology
among other subjects. Therefore, risk along with its elements in business comprises of
complicated definition viewed and considered differently in relation to the taxonomy that the
person uses it during its operations (Mayer 2013, p. 1498). Besides, the general definition of risk
remains to be the cases of uncertainty that happen due to the occurrence of losses during business
operations. The risk remains to be the degree of different cases of uncertainty along with
potential loss that may follow from the specified behavior. These cases of uncertainties are in
relation to the occurrence of the event that may be undesirable for business operations.
Apart from the cases of difference in the definition of risk, two themes that are common
in risk remain to be lost together with uncertainty in business operations. The term probability of
the risk occurring in business operations may comprise of the connotation of the likelihood of
particular individual as compared to the chance to other individuals. Most entrepreneurs are risk
takers in their operation by nature (Parnell 2015, p. 231). The entrepreneur faces losing
everything that they had invested in the business startup. Therefore, there are several risks that
every entrepreneur faces when the plan to begin the new business operations. In the competitive
marketplace and increasingly populated ecosystem, entrepreneurs still face several challenges
when commencing the new business, some of these challenges can result in loss of profit and
cases of bankruptcy (Hambock et al., 2017, p. 1052). Therefore, with any fresh venture of
business, there is the element of risk involved along with various thoughts needs to be given to
the kind of business an individual plan to commence. Uncertainty can be a unique work
specifically if the term of uncertainty in business operations refers to the element of risk and
uncertainty as for the state of mind of the person that processes the risk (Leonard and
Clementson 2012, p. 3). The risk in business operations involves the loss of operations leading to

New business trends: Entrepreneurship along with Business Risk 7
undesirable outcomes during business operations. The loss in business operations through the
rising of risks remains to be the involuntary reduction in the capacity of the entity towards
satisfies wants of people. Therefore, many scholars have failed to agree in separating the
awareness of people, their perception, along with attitude from the general concept of business
operational risks.
Entrepreneurial risk
No matter how well an individual plan as well as prepare, starting any business operation
in any global marketplace is a gamble. The entrepreneur remains to be the risk taker as it is prone
to assume risks of the business. Any error in making the decision on business operations is the
probable source of threat or chance in assuring the business success during operation
(Baumgartner et al., 2013, p. 1099). Any error in the process of establishing business decision
continues to be the probable source of treat or chance in assuring the business success. The
distinctiveness of business entrepreneurs, tight, and rivalry situation of the economy has
obligated capability of entrepreneurs on predicting the risks of business operations (Clogston
2016, p. 382). Therefore, ability to take the risk as being the inherent attribute of the venture of
entrepreneur shows that the entrepreneur remains to be profit from the potential that is
unexploited making an individual also be inevitably deal with the massive degree of uncertainty.
Risks within business operations occur from the uncertainty that concern the future along
with the impact of present judgments. Therefore, choices of business operations need to
comprise of the assessment of their results along with the possibility that the results might differ
from expectation. There is always the need for entrepreneurs to confront the rising problem of
uncertainty in business operations. Besides, there are many types of risk in the present business

New business trends: Entrepreneurship along with Business Risk 8
operations (Aspromourgos 2014, p. 32). The occurrences of risk on business can be applicable to
entrepreneur business in process of making decisions on their operations. Some of these risks
comprise of credit risks, price risks, along with pure risks. The cases of price risks consist of
marketplace risks that associate to the victory of the plan of every business operation, the various
demands of commodities, along with issue relating to price and cost that include the price of
output and risks in the input of prices. Moreover, price risk in operation of business relates to
financial risks that comprise of credit, the flow of cash, foreign currency, together with working
capital (Eraydin et al., 2010, p. 531). Every risk associated with operations of the business are
not monetary, yet the appropriate deal of risk is risks resulted from business pressures that relate
to the growth of the business, the culture of the organization, together with management of
business information. Additionally, another kind of business operational risks includes credit
risks. The credit risks in business operations refer to the chance along with the magnitude of
financial loss that occurs in the process of spending money.
Major types of business operation risks include pure risks. Such kind of risks always
influence operations of business due to the reduction in the valuation of assets of business like
the wreck or demolition of construction, records of the business, equipment, inventory, or other
property. The pure risk can occur in any business operations as a result of costs incurred after the
break of fires, flooding, or any other disaster that negatively affect ideal operations of the
business (Burns et al., 2015, p. 99). Moreover, pure risk also comprises of losses that the
company incur due to the damages incurred during shipping or losses that occur because of
rising in criminal cases that comprise of robbery or misappropriation. Therefore, most
entrepreneurs ace the range of pure risks in their operations and they need to control as well as
manage lest they endanger the future operations of the business of the companies (Nitani and

New business trends: Entrepreneurship along with Business Risk 9
Riding 2014, p. 265). Additionally, pure risks in business operations comprise of legal liability
for damages for harm to clients, shareholders, and suppliers, along with the injury to workers that
result from different accidents, harmful commodities, and inappropriate practices of business,
professional malpractice, and omission of essential elements in business operations (Kim and
Min 2015, p. 43). The other pure risk in operations of entrepreneurs remains to be the risk
associated with paying benefits to workers that get injured under laws that look at the safety of
employees.
Risk taking propensity
Investigation of the process of behavior towards the ideal process of making decisions
has categorized the risk into different elements. Some of these risks comprise of perception,
propensity, along with preparedness to take the risk. Risk propensity in operations of business
refers to the perceived probability that aims at attaining rewards that associate with achievement
of planned scenario needed through entity prior subjection to different consequences that
associates with failures, the alternative scenario that offer less reward, along with less severe
effects that the proposed situation (Bernat et al., 2016, p. 273). The idea of risk-taking around
business operations remains to be one of the different dimensions of the orientation of
entrepreneurship of a corporation. It stands to be the readiness of every business organization to
consign important resources to chances that might remain to be uncertain. Besides, the
perception of risk stays to be the subjective interpretation of loss expected affected by different
views of people of the uncertainty of the decision made and the impact of the decision (Hambock
et al., 2017, p. 1053). Besides, risk propensity within business operation stays to be the general
tendency of an individual towards taking or avoiding risk within the specified type of context in

New business trends: Entrepreneurship along with Business Risk 10
process of making operational decisions. Therefore, risk propensity within entrepreneur is the
shared tendency for business stakeholders to accept or avert risks during their operations.
All these factors concerning risk propensity make most entrepreneurs be risk takers by
nature of their operations. Sometimes, entrepreneurs face losing their business inputs or
everything that they invest into the starting of a business (Fourati and Affes 2014, p. 2).
Therefore, when choosing ideal business operation activities, entrepreneurs have to leave behind
the security as the wage earned behind along with the extra time and resources to use in other
operations. In many cases, entrepreneurs face the point when different unplanned events happen
as the result of failed attempts at endeavors of risk. The cases of ups and downs of the economy
and new trends of market pose the danger to new operations of businesses (Fellnhofer 2017, p.
173). Lack of proper management of businesses tends to get affected depending on nature along
with business location, prospective competition, along with product pricing. Therefore, market
risks can then be effectively managed trough idea of conducting ideal marketplace analysis.
Conclusion
This literature paperwork presents the review of previous data on the risk-taking
propensity of entrepreneurs. The research on this article has attempted to organize the past
survey outcomes to develop the understanding in relation to the topic of entrepreneurship and
risks as a new business trend around markets. The article has summarized the empirical evidence
of ideas of entrepreneurship and risks so as to address the major concerns for the focus on this
investigation. From the literature work above, the discussion on entrepreneurs risks taking
propensity centered on two variables that affect the risk-taking propensity such as demographic
together with characteristics of the business. The impact of these variable predictors on

New business trends: Entrepreneurship along with Business Risk 11
entrepreneurs’ risk-taking propensity has also been investigated. From the explanation, it is clear
that demographic along with business traits are the essential components of risk-taking
propensity. Therefore, considering the inadequate empirical investigation for micro, small,
medium corporations’ risk-taking propensity in different places around the globe, there is a need
for further investigation to address these issues. It will be essential in the next proposal to study
the conduct investigations on different risks that affect operations of micro, small and medium
enterprises. The chapter should also offer insight into appropriate survey design employed to
interrogate the survey problem with particular reference to activities of sampling, methods of
collection of data, along with the techniques employed in analyzing collected data.

New business trends: Entrepreneurship along with Business Risk 12
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Appendix
Enterprise risk management: - It refers to the process of planning, leading, organizing, and
controlling the operations of the corporation with the aim of minimizing the effects on the capital
along with earnings of the organization
Risk: - It is the threat or probability of damaging, injuring, liability, loss, or any other adverse
occurrence caused by different vulnerabilities that exist internal or externally in operations of an
organization and they can be avoided by taking actions that are preemptive
Entrepreneurship:-It is the process that deals with designing, launching, as well as willingness
towards developing, organizing, along with managing the business operations along with any of
its threats or risk to achieve profit
Micro, Small, and Medium Enterprises: - They are the entities that are small in size, defined
about their scope of investment during business operations
Propensity: - it is the fact that an individual during operation being probably to behave or act in
a specific manner especially lousy way