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Theories of an entrepreneurial risk

Classical theory of entrepreneurial risk (representatives of J. Mill, N.W. Senior) identifies risk with mathematical expectation of loss, Which may occur as a result of the selected solution. The risk here is nothing but the harm caused by the implementation of this decision.

Neoclassical theory of entrepreneurial risk (representatives A. Marshall, A. Pigu) at the heart of her position that the entrepreneur works in conditions Uncertainties and entrepreneurial profits are a random variable. Entrepreneurs are guided by the following criteria: the size of the expected profit and the magnitude of its possible fluctuations.

According to the neoclassical theory of entrepreneurial risk at the same amount of potential profit, the entrepreneur chooses an option related to a lower level of risk. Thus, representatives of neoclassical risk theory justified the position of "risk opponents," who believe that participation in gambling, lotteries, betting is not profitable.

Kasian Theory of Entrepreneurial Risk (Representative J. M. Keynes) drew attention to the tendency of entrepreneurs to accept high risk for greater expected profit. Keesian theory justified the need to introduce "risk costs" to cover the possible deviation of actual revenue from expected, and highlighted three main types of risk, Which it is advisable to take into account in economic life (risk of the entrepreneur or borrower, risk of the creditor and risk related to possible reduction of value of the monetary unit).

A fundamental approach to risk category is presented by F. Knight in "Risk, Uncertainty, and Profit." Knight distinguishes two types of risks: risks which objective probability is estimated and which can be insured (such risks become article of costs of production subtracted from profit), And risks, the objective probability of which is incalculable, which explain the existence of specific income of entrepreneurs.

Economic science considers three different approaches to risk understanding to be official:

  1. In the mass consciousness, the risk appears in the form of possible failure, danger, material and other losses that may arise as a result of the implementation of the chosen decision;
  2. Risk is understood as "a way of acting in an uncertain environment" or as "a situational characterization of the activity of its outcome and possible Adverse consequences in cases of failure. " Thus, risk is understood to mean either the possibility of loss or "good luck action";
  3. Risk is defined as the possibility of a positive (chance) and negative (loss) deviation in the course of an activity from the expected values.