5 ms·

you're equivocating. first you say it's about risk seeking/management and then you say it's about agency/independence. personally I strongly believe it's the la

you're equivocating. first you say it's about risk seeking/management and then you say it's about agency/independence. personally I strongly believe it's the latter. if you derisked my startup for me but let me stay in control I would be much happier. eating the risk is the premium /I'm/ paying for the agency - it's that opportunity that you don't have in a large company (trading risk for freedom).

psyc 9y ago
There's overlap. The herd instinct reduces risk.
osrec 9y ago
Perhaps, but what I was trying to convey is that your own company gives you the freedom to choose your risks without restriction. Working for someone doesn't usually allow you to do that (as your boss decides your risk environment).
- shanghaiaway 9y ago
  Nobody chooses high risk over low risk. People choose various degrees of autonomy, based on what risk they are willing to accept.
  - TheOtherHobbes 9y ago
    Traders choose high risk over low risk. Statistically, most day traders end up regretting that choice. I suspect for a good proportion of entrepreneurs, the financial risks are low - it's either money you can afford to lose, or it's someone else's money, or both - the professional risk is low because a lot of companies will still hire you if you fail, and the personal risks are unknown and/or ignored. Being a corporate employee is actually riskier. You can be fired at will with little or no safety net, for reasons that have nothing to do with your own professional skills or mistakes.
    - osrec 9y ago
      Quite the contrary in my experience. For most entrepreneurs, their first attempt is often make it or break it - i.e. the risk is high. The only thing is, the entrepreneur often knows that the odds are not as bad as they appear, because of their personal abilities at managing the risk. That's what they're hoping to get rewarded for eventually.
  - osrec 9y ago
    People choose risk based on their appetite. For sure, we try to minimise it, but if your statement were true, no one would ever cross a street or even drive a car. People will often take a higher level of risk in order to improve the potential reward.
  - chiefalchemist 9y ago
    Risk is relative. One person's high risk is another's snooze fest. I also feel you could factor opportunity into the equation. That is, I might accept less autonomy for more opportunity. And of course there's timing. Life is funny like that.

psyc 9y ago

There's overlap. The herd instinct reduces risk.

osrec 9y ago

Perhaps, but what I was trying to convey is that your own company gives you the freedom to choose your risks without restriction. Working for someone doesn't usually allow you to do that (as your boss decides your risk environment).

shanghaiaway 9y ago
Nobody chooses high risk over low risk. People choose various degrees of autonomy, based on what risk they are willing to accept.
- TheOtherHobbes 9y ago
  Traders choose high risk over low risk. Statistically, most day traders end up regretting that choice. I suspect for a good proportion of entrepreneurs, the financial risks are low - it's either money you can afford to lose, or it's someone else's money, or both - the professional risk is low because a lot of companies will still hire you if you fail, and the personal risks are unknown and/or ignored. Being a corporate employee is actually riskier. You can be fired at will with little or no safety net, for reasons that have nothing to do with your own professional skills or mistakes.
  - osrec 9y ago
    Quite the contrary in my experience. For most entrepreneurs, their first attempt is often make it or break it - i.e. the risk is high. The only thing is, the entrepreneur often knows that the odds are not as bad as they appear, because of their personal abilities at managing the risk. That's what they're hoping to get rewarded for eventually.
- osrec 9y ago
  People choose risk based on their appetite. For sure, we try to minimise it, but if your statement were true, no one would ever cross a street or even drive a car. People will often take a higher level of risk in order to improve the potential reward.
- chiefalchemist 9y ago
  Risk is relative. One person's high risk is another's snooze fest. I also feel you could factor opportunity into the equation. That is, I might accept less autonomy for more opportunity. And of course there's timing. Life is funny like that.