Many of the entrepreneurs behind large companies today have lost jobs, fallen into bankruptcy, and had ideas that failed, before rebounding with great success. From Ben Franklin to Steve Jobs, all remarkable entrepreneurs have been applauded through the years for their ability to take risks and carry out high-impact ideas despite the difficulties they faced.
Risk aversion in companies
When companies or industries go into survival mode, their employees avoid taking risks as a way to avoid being laid off in case of failure. Growing businesses and those in crisis, the contrast in their approach to employees' creativity. Growing companies encourage the development of new ideas, in order to find business development opportunities. On the contrary, enterprises in a crisis make their employees focus on profit and perceive innovation as a source of costs that the company cannot afford. Ironically, companies where workers fail to take risks along the way often find themselves in a position where they need to go all-in on one new product or project, in order to survive.
Related post: Should Companies Invest in Innovation or Leaders?
Related post: Should Companies Invest in Innovation or Leaders?
Education a source of risk aversion
The current education system has a negative conception of failing. Students do not have the opportunity to do so without being punished for it. The reason why it is not surprising is that students, once at work are not able to take risks. However, there are methods by which we can compensate for this shortcoming in the system. For example, participating in research projects where the outcome is uncertain. Studies indicate that it encourages critical thinking and the ability to work under uncertainty. Likewise, we can put ourselves in unfamiliar situations, such as traveling abroad where the culture shock and a new language require us to develop the ability to overcome adversity.
Related post: Companies are Afraid of Innovation
Related post: Companies are Afraid of Innovation
How to take more risks and advance as a professional
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