Why is entrepreneurship considered risky?

Question

(1 point)

Entrepreneurs often risk their own time and money investments in creating a new business

Entrepreneurship guarantees profits

Entrepreneurs never have to invest their own time or effort.

The government does not encourage entrepreneurship because it does not benefit the economy

Answer 1

Entrepreneurs often risk their own time and money investments in creating a new business, which can be risky as there is no guarantee of success. Additionally, starting a new business involves uncertainty, competition, and market fluctuations, all of which contribute to the perception of entrepreneurship as risky.