Entrepreneurs have a reputation for having a high-risk tolerance. Studies back up this stereotype, and I can too: Of all my clients, small-business owners are more daring when it comes to managing their financial assets.
This approach to risk is understandable. Entrepreneurs are often innovators willing to leave behind a “steady paycheck” to test the workability — and profitability — of their ideas. I’ve also found that this personality type tends toward optimism. Entrepreneurs’ great belief in the upside overshadows any downside.
