Entrepreneurship and risk — Economics, 7–10 years
An entrepreneur notices a possible need, organises resources and accepts that the result is uncertain.
Trying an idea
An entrepreneur is someone who tries to organise people, tools or money to make something useful or offer a service. The idea may work, or it may not. Entrepreneurship is not simply having a bright idea; it also means testing it and taking responsibility for the choices.
Why take a risk?
People sometimes want a product or service that does not exist nearby, or want a better way to solve a problem. An entrepreneur tries to meet that need before knowing the result. The risk exists because time, effort or money may be spent without earning it back.
A school fruit stall
Leo buys 20 apples for €10 and plans to sell them for €0.70 each. If all sell, the money received is 20 × €0.70 = €14, so the possible gain is €14 − €10 = €4. But if only 12 sell, he receives €8.40 and loses €1.60, before counting his time.
The trap: a good idea guarantees success
A clever idea can feel certain because we can imagine people liking it. But customers may not want it, another seller may offer something similar, or the costs may be too high. A sensible entrepreneur checks the idea in a small way before risking more resources.
Where you see it
A person who sells handmade cards online, starts a bicycle-repair service or opens a café is making entrepreneurial choices. So is a child who tests a stall at a school fair, if an adult helps with safety and rules. The common part is trying to create value while the result is uncertain.
Keep exploring
Other languages
Loading MyLeoNes™…