Entrepreneurship involves several inherent risks. The first and most obvious risk is financial. Investing personal savings or taking on debt to fund a business can lead to significant financial loss if the venture fails. Market risk is another critical concern; understanding and predicting market trends and customer needs is never a guarantee, which can result in poor product-market fit.
Operational risks, such as supply chain disruptions or technological failures, can also pose threats to the business. Moreover, regulatory risks, including changes in laws and regulations, can impact operations and profitability.