Friday, 31 March 2017

Take Risks to Make Things Happen

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To be a successful entrepreneur, you must be a risk taker to a certain extent. To be successful at anything, there is an element of risk taking. You don't want to take foolish risks, but you must be able to take risks. After all, life is a risk.

Risk Takers

People often admire risk-takers, but hesitate to take risks themselves. It is similar to change. People may love the idea of change, but resist even the slightest alteration in their daily lives. In "Leading Minds," Howard Gardner noted that exemplary leaders display an inclination from early childhood for risk-taking. He observed that "leaders are risk takers who do not easily withdraw from the fray." Risk taking is a common trait among great leaders, and those who lead must be willing to take chances. Often, the greater the risk, the greater the glory. However, this does not provide for a leader to abandon common sense and recklessly pursue risks with little likelihood of reward.

Being A Leader

One of the things an effective leader must realize is that just taking risks for risk taking sake is not what leadership is all about. A leader must be able to determine the right risks to take. Careful analysis, knowledge, and understanding of alternate risks and alternate expectations compared to probable and potential outcomes enables a leader to choose what risks to take, and to take greater risks with higher probability of success. This analysis includes identifying the resources and efforts needed for desired results and measuring results against expectations. Careful attention will allow a leader to make early corrections of wrong or inadequate decisions, thus minimizing the actual risk involved, even when undertaking greater challenges that appear to be much greater risks.

Risks Is The Essence of Economic Activity

In the book Management, Peter Drucker wrote, "To take risks is the essence of economic activity. One of the most rigorous theorems of economics (Boehm-Bawerk's Law) proves that existing means of production will yield greater economic performance only through greater uncertainty, that is, through greater risk." The key is to understand the risks and rationally choose the risk-taking course of action rather than plunge into uncertainty on the basis of a hunch or other uneducated or uninformed opinion.


Leaders must experiment with innovative ways of doing things, and this means being willing to take risks. Leaders encourage others to step out into the unknown rather than play it safe, to think outside the box, and to set goals that may seem unreachable at the time. They then support those thoughts and goals and help find the resources to make them reality. Leaders learn from mistakes and continue to foster risk taking. Leaders simply make things happen.




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