Uncertain and Risky Business Environment: Entrepreneurial Perceptions

Abstract

An Entrepreneur is faced with ambiguous and changing business environment that brings along uncertainty and risk. Uncertainty and its management can make or mar an organization’s future. The first step in tackling the uncertain business environment is to continuously scan the changing environment. Clear and up-to-date knowledge of the environment aids in timely action which can mean the difference between survival and extinction. Understanding Uncertainty and Risk is critical in the entrepreneurial business environment as managing uncertainty involves swift and adaptive decision making to avail the opportunities that are presented and avoid the threats that are posed by the changing environment. Scanning the business environment assumes a greater significance in the context of Indian Economy which is characterized by dynamic social, economic and political environmental segments. Historically, India has experienced entrepreneurial uncertainty in the form of excessive public sector control, unstable political leadership, fiscal debt and globalization. This paper explores the need of the entrepreneurs to keep abreast of the developments in the business environment so as to be “opportunity focused and not risk focused”. The paper documents the experiences and perceptions of entrepreneurs about the business environment.