TFS: Entrepreneurial risk-taking in the context of bad options
August 13, 2013
Entrepreneurs are famous for taking crazy risks, but according to Kahneman, it's easy to understand their behavior in context. When the plane is falling out of the sky, how should you respond?
The entrepreneurs who opted for the "Hail Mary" pass were piloting a crazy idea to avoid catastrophe. The more imminent failure becomes, the more likely they are to be running headlong into great risk.
Whether you've invested in a new-business venture or work for a crazy entrepreneur, placing this risky behavior into context will be very important. Because you may have information the entrepreneur lacks. You may see a safety net. You may know a way to land the plane safely. Be sure and speak up. Or hold on for dear life.