Entrepreneurs 'need to make risky decisions'
Nov 13 2008
The success of a business is down to the risky decisions the owner makes, according to new research from the University of Cambridge.
Studies by the university found entrepreneurs are riskier decision makers than managers, leading to them potentially being more successful.
The research, published in the journal Nature, also found it could be possible to teach or enhance this risk-taking behaviour by using drugs or pharmaceuticals.
When starting a business entrepreneurs take a chance of going it alone, rather than working for another company.
They take a risk on their finances, reputation, family stability and self-esteem, the research says, which sets these people apart from the rest.
Professor Barbara Sahakian, lead author of the study at the Behavioural and Clinical Neuroscience Institute, says the findings show that not all risk-taking is bad.
'In fact, risky or 'hot' decision-making is an essential part of the entrepreneurial process and may be possible to teach, particularly in young adults where higher risk taking is likely and age-appropriate,' she adds.
Prime minister Gordon Brown recently urged companies to engage in 'responsible risk-taking'.
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