The life of an entrepreneur is not a long quiet river. Taking risks is part of everyday life for entrepreneurs and they are constantly faced with unforeseen events that even my most seasoned economists could not foresee, such as the global health crisis and the closing of all borders. The entrepreneur must understand all the facets of risk to never be caught off guard and never minimize them. So what are the risks?
According to the study by the 3rd AGIPI OpinionWay barometer of risk-taking by entrepreneurs and self-employed, the decision to become an entrepreneur is prompted by the desire for freedom and independence, which is even more intense among start-ups. Undertaking is certainly an assumed risk, but not all aspects are anticipated.
Contrary to what one might imagine, 77% of executives prepared for not having fixed compensation every month and 64% for receiving less than an employee. 60% of entrepreneurs and self-employed respondents anticipated encountering financial problems.
But why then become entrepreneurs or self-employed?
To obtain his freedom and independence! Being free and becoming your own boss are the priorities for entrepreneurs (65%) and even more so for start-ups. For 90% of respondents, becoming self-employed is a choice and 31% say they started out because of an opportunity or because of an imposed choice.
But are all the risks assessed?
Entrepreneurs would like to protect themselves more, but they do not always have the means. Even if 88% of entrepreneurs feel that they are managing this risk well, 50% of them would like to better cover themselves, but the issues facing entrepreneurs are elsewhere and mask the need to take out insurance.
It seems obvious to entrepreneurs that this is a risk that must be covered for a majority of entrepreneurs and self-employed, which is less true for start-ups. For 76% of those questioned and for only 58% of start-ups, the fact of not subscribing to a Complementary Health represents a risk but also not securing additional income in the event of an accident or illness represents a risk for 73% of respondents and for 59% of start-ups, which means that they are aware of the risk taking.
Thus, the inability to no longer be able to work remains the first concern of entrepreneurs and self-employed people and, moreover, health and personal risk coverage is on the rise in 2018 which is very revealing. Start-ups attach less importance than other entrepreneurs to these risks: 59% consider that not securing additional income in the event of an accident or illness represents a risk, compared to 73% for the other entrepreneurs surveyed .
It should be noted according to the study that provident coverage is on the rise compared to 2017: 68% of respondents say they have taken out insurance in the event of sick leave / disability (+ 9 points), 66% death insurance (+ 6 points), 56% reimbursement insurance for professional expenses in the event of work stoppage (+ 8 points). On the other hand, 22% of start-ups say they have not subscribed to any provident fund, compared to 14% for others.
Becoming an entrepreneur or independent is a risk and those who enter the entrepreneurial adventure are fully aware of it.