In the context of entrepreneurship, the assumption of stable earnings is often unrealistic. Startups and new ventures typically face high levels of uncertainty and volatility. Factors affecting stability include:
1. Market Dynamics: The market environment can change rapidly, affecting demand for products or services. 2. Competition: New entrants and disruptive technologies can impact a business’s market share. 3. Operational Challenges: Issues such as supply chain disruptions or regulatory changes can affect earnings.