refers to other activities associated with entrepreneurship, such as independence or the work of the venture itself.

The thrust of this theory argues that entrepreneurs vary in the relation between risk and financial return. This typology highlights the need to explore in economic theory the styles or entrepreneurial motivations that deviate from the styles most characterizing the rational person. "If different entrepreneurial styles exist, then not every person who founds a new business enterprise does so by seeking to minimize financial risk and maximize financial return. Models of organization formation would thus have to be adjusted for differences among those who form organizations."' Thus, not all entrepreneurs are driven solely by monetary gain, and the level of financial risk cannot be completely explained by profit opportunity. Entrepreneurial risk is a far more complex issue than a simple economic rish-versus-return explanation. It should be noted !hat "people who successfully innovate and start businesses come in all shapes and sizes. But they do have a few things others do not. In the deepest sense, they are willing to accept risk for what they believe in. They have the ability to cope with a professional life riddled by ambiguity, a consistent lack of clarity. Most have a drive to put their imprint on whatever they are creating. And while unbridled ego can be a destructive thing, try to find an entrepreneur whose ego isn't wrapped up in the enterprise."23
Entrepreneurs face a number of different types of risk. These can be grouped into

four basic areas." Financial Risk In most new ventures the individual puts a significant portion of his or her savings or 'other resources at slake. This money or these resources will, in all likelihood, be lost if the venture fails. The entrepreneur also may be required to sign personally on company obligations that ,far ,-.xceed his or her personal net worth. The entrepreneur is thus exposed to personal bankruptcy. Many people are unwilling to risk their sa y ings, house, property, and salary to start a new business. Career Risk A question frequently raised by would-be entrepreneurs is whether they will be able to find a job or go back to their old job if their venture should fail. This is a major concern to managers who have a secure organizational job with a high salary and a good benefit package. Fa mily a nd Soci al Risk Starting a new venture uses much of the entrepreneur's energy and time. Consequently, his or her other commitments may suffer. Entrepreneurs who are married, and especially those with children, expose their families to the risks of an incomplete family ' xperience and the possibility of permanent emotional scars. In addition, old friends may vanish slowly because of missed get-togethers. Psychic Risk The greatest risk may be to the well-being of the entrepreneur. Money can be replaced; a new house can be built; spouse, children, and friends can usually adapt. But some entrepreneurs who have suffered financial catastrophes have been unable to bounce back, at least not immediately. The psychological impact has proven to be too severe for them.