Companies Need Entrepreneurs Willing to Take Risks

Maria, owner of a 12-person design agency, stares at the stack of invoices on her desk. It's late, her coffee's cold, and the $800K in collections feels like a mountain. She knows she needs to innovate, but every new idea feels like another gamble she can't afford.

You, the founder, know this feeling. The world shifts, and playing it safe seems like the only option. But that’s the trap. Innovation demands risk.

Think of Ben Franklin, who saw his printing business fail before he found success. Or Steve Jobs, fired from his own company, only to return and redefine an industry. They didn’t avoid failure; they walked through it. They took risks, pushed high-impact ideas, and built something lasting despite the difficulties.

Risk aversion in companies

When a company or an entire industry shifts into survival mode, employees often pull back. They avoid taking risks, fearing a misstep could cost them their job. This creates a stark contrast between growing businesses and those in crisis.

Growing companies actively encourage new ideas. They push for creative solutions to find new business opportunities. Companies in crisis, however, often direct employees to focus on immediate profit. They see innovation as a cost they can’t afford.

Ironically, businesses where workers consistently avoid risk often find themselves in a position where they must go all-in on one new product or project just to survive. The small risks they avoided earlier become one giant, unavoidable gamble.

Related post: Should Companies Invest in Innovation or Leaders?

Education a source of risk aversion

Our current education system often penalizes failure. Students rarely get a chance to try and fail without consequence. It's no surprise, then, that many enter the workforce hesitant to take risks.

But we can compensate for this systemic shortcoming. Participate in research projects where the outcome isn’t guaranteed. This builds critical thinking and the ability to work through uncertainty. Or put yourself in unfamiliar situations, like traveling abroad. Culture shock and a new language force you to develop resilience and overcome adversity.

Related post: Companies are Afraid of Innovation

How to take more risks and advance as a professional

A scarcity of professionals and entrepreneurs willing to take bold risks creates a clear opportunity. If you develop your capacity to lead daring ideas, you'll stand out. Here's how to start.

Look through the risk. Imagine the successful outcome. What does it look like? What does it feel like to achieve it? Focus on that goal and its benefits. This helps you see what you’d miss by backing out. It also clarifies what truly motivates you to move forward.

Determine your obstacles. You likely already know what’s stopping you. If not, think it through. In your mind, these obstacles can feel like an impossible wall between you and your goal. Break that wall into smaller, manageable pieces. Splitting a large problem into specific steps lets you tackle it more effectively. You’ll track progress and stay motivated.

Start small. Building risk-taking skills takes practice. You build confidence by taking small steps. Start with low-stakes risks in your personal life: Explore a new neighborhood. Order something unfamiliar at a restaurant. Change your hairstyle. You’ll find yourself taking bigger risks before you know it.

Make Mental Rehearsal. Practice helps. Before you take a risk, picture the entire scenario. Walk through each action, step-by-step, with as much detail as possible. Do this several times. Focus on the ideal outcome, then anticipate negative twists. Rehearse how you’ll solve those problems too.

“The secret to getting ahead is getting started” - Mark Twain