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Balancing Operator Risk and Capital Market Risk in Entrepreneurship
Entrepreneurs often feel the desire to shift from intangible ventures to tangible ones. It is common for them to seek a project they can physically interact with. This transition is acceptable if the entrepreneur has built credibility in the field. Investing in a project presents two main risks: operator risk and capital market risk. It is crucial not to take on both risks simultaneously as it can lead to a poor investment decision. A credible operator can attract more capital with less risk, while a less credible one may face more challenges in securing funding for their venture.