Defining the Concept of Risk Applied in Entrepreneurship. Conceptual Delimitation Risk - Entrepreneurial Uncertainty

Alexandru Tărăbîc Andrei
Additional contact information
Alexandru Tărăbîc Andrei: West University of Timisoara, Romania

European Review of Applied Sociology, 2019, vol. 12, issue 18, 43-46

Abstract: Even though in many cases the terms of risk and uncertainty are similar, they have to be delimited to understand the meaning of each, individual, as accurately as possible. The two terms are combined in different situations. No matter how well the risk is managed, uncertainty cannot be removed because all possible situations and interdependencies cannot be taken into account. Thus, a source of risk can be considered uncertainty in itself if it is based on poor quality information about the actual internal or external situation of the company. Also, in my conclusion, traditional financial theory distinguishes between systematic risk and particular risk, which reaches the company’s overall risk. Investors can reduce total risk with the two primary risk management instruments, namely diversification and asset allocation.

Keywords: entrepreneur; risk; uncertainty; SME’s (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/eras-2019-0004 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:erapso:v:12:y:2019:i:18:p:43-46:n:4

DOI: 10.1515/eras-2019-0004

Access Statistics for this article

European Review of Applied Sociology is currently edited by Ciprian Panzaru

More articles in European Review of Applied Sociology from Sciendo
Bibliographic data for series maintained by Peter Golla ().