Globally, entrepreneurship is one of the major drivers of the economies of many countries. It involves the process of starting new businesses and attaining self-employment while employing other members of the community at the same time. However, the process of starting new businesses is challenging and only the determined business people become successful entrepreneurs. According to Natasha (2003), the process of starting a new business is a complex one due to the risks involved. The writer further reveals that the spontaneity and uncertainty of the business startups make it difficult for the tycoons to pin down the exact theory in play in a given market.
A risk is defined as the likelihood that a given action will lead to undesirable event. Although the term risk has a negative connotation, the objectionable event can either be positive or negative depending on the causal action. While evaluating the risks in the business domain, Leitch (2010) states that the risks associated with the startup businesses have operational and financial consequences. Consequently, the moves by individuals and organizations alike to join a given market implies an agreement to carry the risks associated with the venture.
Business people face several risks before starting the new enterprises in various markets. The prevailing economic conditions of a country, the government policies, the uncertainties in the market conditions as well as the existing legal systems all play a vital role in hindering the introduction of new business ventures in each place or country. For the new businesses to flourish and perform better in their respective markets, the entrepreneurs should devise ways of identifying the potential risks to their ventures beforehand. This way, they can be capable of handling the challenges in a successful manner, increasing their chances of fruitfully implementing their business ideas.
Business people in the United Kingdom and Saudi Arabia also face a number of challenges while trying to establish new businesses. Although the two countries are considered as lucrative business areas, a number of risks faced by the new businesses hinder many investors and tycoons from establishing their businesses in the two countries. In the United Kingdom, for instance, the existing market trends have always hindered new business startups. Hillson (2002) states that the dynamic market conditions in the United Kingdom pose significant threats to the establishment of new businesses depending on a number of factors, including the location of the business, the pricing of the product products and competition from the other firms. Moreover, the access to markets by the entrepreneurs has also been a major issue affecting the new business establishments in the United Kingdom…