What Is Your Attitude To Risk In Business?

by Kat Scannell | share | tweet | connect
In a recent YouGov poll of 500 business leaders 40% of female entrepreneurs admitted to being worried about failing when they set up their business compared with 36% of men. Not a huge difference, however the same survey did show how female entrepreneurs put greater emphasis on being risk averse and developing their businesses to show long-term value. It also showed that female entrepreneurs are more likely to avoid the pitfalls that so many young businesses suffer from, such as cash flow – see our article "Our Tips On Reducing Your Late Payments". Being in a position of meeting a multitude of entrepreneurs every month made me think whether this is evident in my experience and also what does this really mean.
As you might expect the entrepreneurs I meet are all different, including gender, background, ethnic background, market focus and experience. Quite possibly the above survey is true when I look back, and actually the conversations I have with majority of female entrepreneurs I meet tend to surround their planning. Whilst this trait can also be seen in male entrepreneurs, including very successful ones, I probably see more patience and planning with female entrepreneurs and an emphasis on building value and IP.
So What Can We Learn From These Female Entrepreneurs?
All businesses need different strategies at different times, and clearly in some circumstances with greater risk can come higher rewards, but there are times when businesses need to learn from the entrepreneurs who do plan on building long-term value.
Will This Trend Change In The Future?
At the pinnacle of the business world, when you look at the world's top self-made billionaires you would be hard pressed to name a female one beyond Oprah Winfrey.
We all know the gender barriers are being torn down and certainly entrepreneurialism feels like it is on the rise in this country, perhaps thanks to new micro-funding changes (See our article on "Crowd-funding for your business" and "Changes To Invoice Financing") and better access to start-up capital.
With wider social changes to availability of child care, paternity leave and even a rise in stay-at-home dads there is clearly going to be a rise in female entrepreneurship.
As to whether that will mean an increase in female entrepreneurship risk or a reduction I am unsure. With the wider social changes I would bet on an increased attitude to risk but then again I am not a betting woman, I am an accountant with the clear knowledge that the house always wins.
Talk to us