Theoretical literature on entrepreneurship risk management

Since is more risky not involved in risk means is good to take reasonable risk. Longman Dictionary new edition (2009) defines risk as the possibility that something bad, unpleasant or dangerous may happen. Risk simply implies a possibility of unexpected outcome. More definition stated by different authors with different views.

          Van Harne (2001) expresses risk as a situation where the future outcome is unknown but the likelihood of various possible future outcome may be assessed with some degree of confidence probability based on knowledge of past or existing events.

          Nwankwo (2004), stated that possibility of loss, injury, inevitable in life. Entrepreneurship is a risky business in the sense that it is the only business where the investors involved major financial risk, means they are the risk takers. (Umeh 2001).

          Risk management if any single product can be measured by calculating standard deviation and variance of the return on investment portfolio since risk management is the process of assessing operational dangers of a particular position, measuring it magnitude, and miligating in order to increase the economy growth of the country.

Entrepreneurship Risk Management: A contenictual Analysis

The quantifiable likelihood of less-than expected returns is known as risk. In financial terms, risk is the chance that an investment’s actual return will be from the expected return. It includes the possibility of losing some or all of the original investment.

          Entrepreneur face various types of risks, some of which might be external in nature, that is, not under the direct control of the owner of the investors while the others may be internal n natives, which the investor can be control to a great extent. Because of the fear of closure as a result so many threats, investors often find it necessary to undertake activities geared toward effectively tackling these threats. These activities are known as risk management.

          Taking and managing risk is the very essence of business survival and growth.

          Risk management according to Douglas (2009) is the identification, assessment. The prioritization of risk followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. It is the systematic application of principles, an approach and a process to the tasks of identifying and assessing risks and then planning and implementing risk responses.