The risk of failure is an inherent part of free enterprise. Does society have an obligation to come to the aid of entrepreneurs who try but fail? Why or why not? Also, please discuss some ways you can minimize your risk.
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No, society has no obligation to rescue entrepreneurs who fail to create a successful business. Any person seeking to run a private business must assume the risks associated with such an endeavor. The owner of a private business is seeking personal gain, therefore society is not obliged to cover his or her losses in the event of failure. A business that is a direct benefit to society, on the other hand, would be obliged to receive some compensation or financial support by society in the event of failure since society would be adversely affected by its loss.
To minimize risk, businesses should be fully aware of the needs their products or services fulfill. They should not overextend themselves financially in order to prevent an untenable loan payback scenario in the event of an economic downturn. Also, businesses should continually adjust for changes in demographics of their target customers to avoid stagnation and lack of interest in their product line.
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