That’s why, even though the word risk often carries negative connotations, it’s far from an inherently negative feature of business. While it’s true that if uncertainty is managed poorly it can wreak havoc; if dealt with masterfully, it will unlock opportunities. It shouldn’t be shocking to say that successful entrepreneurs are risk-takers but their real trademark is a mastery in managing risk.
Against the backdrop of economic instability, technological leaps, geopolitical tensions and a global pandemic, we felt there was a value in understanding how entrepreneurs have been dealing with risk in the UK. That’s why we came together with The Entrepreneurs Network to survey business owners across Britain, to query their views on the general risk environment (and how it may evolve), on the emergence of new and extraordinary technological capabilities and how they may affect their businesses, and on who they trust as stakeholders to manage these risks.
Perhaps unsurprisingly, the majority of entrepreneurs think that the risks facing their businesses either stayed the same or got worse in the past year and only 23% of them claim that there will be less risk a year from now. Smaller businesses have an even more pessimistic disposition.
However, our survey – which will be repeated annually – also revealed that entrepreneurs are excited about opportunities on the horizon. On the topic of Artificial Intelligence, for example, many more entrepreneurs view it as an opportunity to their business model than a threat. Evidence like this should be kept firmly in mind when questions of AI regulation are raised – while it’s right to want to mitigate risks, we must be careful not to stifle innovation.
Entrepreneurs are pivotal actors in ensuring that we continue to innovate and grow. Their ability to do this, however, is limited if they’re preoccupied with battling headwinds. Some risks are inherent, but many others can be reduced, and we hope this research gives policymakers a better idea of how to go about doing that.
Ed Turner
Chair, Mishcon Future