Some do this to limit capital outlay, others because they simply have limited funds. An insufficient cash flow is well known as a catalyst for business inadequacy. An entrepreneur needs to handle a variety of complex tasks and resources quite well. An abundance of capital alone is not enough to develop a respectable firm, whether the entrepreneurs run the enterprise solo , with partners or as a company with employees. The removal or reduction of a few factors will likewise benefit a number of enterprises.
Risk is a term often used by insurers and bankers.
All of you present have met the corrupt or the inept. Yet how many project managers will tell their banker or their insurer about the risks that they must know will creep silently into any project. The risk is always there, yet it can be reduced to a tolerable level. When the risk gets in the way of project performance , the financiers will react. In order to control risk we need to look at how projects are planned and how they are controlled.