Financial crises Essay

It is difficult to deny the fact at times of financial crises more and more people have no other choice but to become entrepreneurs (Spors & Flanderz, 2009). Due to the growing unemployment, more and more people simply cannot but use entrepreneurship as the source of wellbeing. The success of such business initiatives depends on how well new entrepreneurs are able to evaluate their operational risks. Moreover, given that operational risks are being formed at all levels of organizational performance, entrepreneurs should be extremely cautious and attentive toward such risks, and develop effective monitoring systems that would work to identify operational risks as soon as they are created. It should be noted, that for a business to be successful it is not enough to understand operational risks; entrepreneurs should remember that the latter do not account for strategic and reputational issues that are equally important in business. I believe that entrepreneurs should choose holistic approaches to business – the approaches that cover a broad range of risks and help timely identify and address them. Comparative Advantage It is obvious that comparative advantage is one of the few concepts that drive economic development and provide countries with additional production stimuli. The case of Turkey (Afsin,Yilmaz & Fahrettin, 2007) suggests that the more country invests in manufacturing the most successful and cost-efficient products, the more likely it is to gain comparative advantage over other countries and to use this comparative advantage as the source of significant profits. What seems to be true, though, is that the concept of comparative advantage does not cover all benefits the country may use when investing into the most competitive products. Comparative advantage provides countries with an opportunity to use additional profits for the development and improvement of other products. These investment opportunities create a kind of comparative advantage cycle, which national manufacturers can continuously use to increase GDP, expand research and development opportunities, and to conquer the growing share of markets.