By Debra Brennan Tagg
Entrepreneurs have a reputation for having a high-risk tolerance. Studies back up this stereotype, and I can too: Of all my clients, small-business owners are more daring when it comes to managing their financial assets.
This approach to risk is understandable. Entrepreneurs are often innovators willing to leave behind a “steady paycheck” to test the workability—and profitability—of their ideas. I’ve also found that this personality type tends toward optimism. Entrepreneurs’ great belief in the upside overshadows any downside.Experienced entrepreneurs also know the levers they can pull if things don’t go as planned. Or at least they thought they knew. We all thought we knew. Even for those of us who calculate risk for a living, 2020 was a curveball. But if you take an entrepreneurial approach, this past year provided a great laboratory for testing your relationship with risk.
