What are the risks associated with entrepreneurial finance?
Entrepreneurial finance involves several risks, including:
1. Market Risk: The possibility that the market may not respond favorably to the product or service. 2. Operational Risk: Issues that arise from the day-to-day operations of the business. 3. Financial Risk: The risk of running out of capital or failing to manage cash flow effectively. 4. Regulatory Risk: Changes in laws and regulations that could affect the business. 5. Reputation Risk: Potential damage to the business’s reputation, which can impact financial stability.