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 Wed Jan 31, 2007 3:20 am Are you a risk taker? |
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| Jamie (K) wrote: | Stew, I went around and around with a German corporate employee for a couple of months recently, because he believed certain American business behaviors and commercial laws were "stupid".
After a while I realized that in his mind "stupid" meant "does not eliminate all possible risk". He was unable to imagine why someone would be allowed to start a business without having to sink tens of thousands of dollars into strange forms of insurance and various other instruments to eliminate all the risk. He couldn't imagine someone quitting his corporate job to start his own business or to become a consultant or independent contractor. All these things were "stupid" in his mind, because they all involved risk.
I realized that typical Germans and typical Americans have very different conceptions of risk. But it's not whether or not something is risky, but what is an acceptable level of risk. It seems that many Germans approach an opportunity and think, "Can I fall down?" If the answer is yes, then they might not take advantage of the opportunity. A typical American in the same situation would think, "Can I fall down? Yes. What are the chances I'll fall down? How hard will it be to get back on my feet after I fall down?" and then he decides whether or not to proceed based on that. In the US it's not unusual to meet people who have started three, four, even five failed businesses before they hit on a successful one. I'd bet these people are less common in Germany or France.
When I was helping manage a language school in the Czech Republic, near the German border, we were on the verge of importing Americans to teach German. The problem was that, for various social and bureaucratic reasons, the Germans found it "too risky" to spend a year or two teaching there. Even unemployed Germans wouldn't do it! There was no problem getting Americans, Brits or Australians, so we decided to seek out anglophone German teachers. The principal of one of the high schools had noticed the problem also, and she told me, "These people from Anglo-Saxon countries have a very different mindset when it comes to risk and volunteerism!"
Another interesting thing I've noticed and read about is that among American self-made millionaires (most American millionaires are self-made) most people are religious. It appears there's a connection between being religious and being able to take the big risks necessary for starting one's own business. Evidently, it's not because they think God will somehow miraculously protect them from failure. It's because they feel that they will not lose any human dignity even if they take a risk and lose everything they have.
I think a major factor in what people think of as risky is how much socialism they've grown up with. People in post World War II Europe have grown up with extremely intrusive socialism and regulation, and many of them get queasier over risk than a typical American or African. |
Jamie, I think everything of what you are saying here makes perfect sense. Most of the Germans I come in contact with frown upon the idea of starting their own business or becoming self-employed. They prefer to sit and wait for somebody to give them a job instead of being active themselves. I don't have any exact statistics but I would venture to say (how is this for taking a risk  ) that the percentage of self-employed Americans and American business owners is much higher than the number of self-employed Germans.
I'm not judging anyone, just trying to contribute to finding an answer to Stew's question. Jamie, I do think that you are in a position that allows us to draw a conclusion as to what the differences between Germans and Americans. We have had similar discussions before and of course we have to generalize in order to compare different mentalities and ways of thinking.
So I'm not saying that my observations refer to every single German but I'd say it's safe to assume that Germans do have a tendency to 'minimize' any risk while Americans in general do have a tendency to look for an opportunity in any situation rather than the risk. Why is that the overwhelming majority of all international companies are US based? What about Internet businesses? Where are the Germans? What about the venture capital industry? I think Germany is light years away from the situation in the US. Why are most IT companies started in the US and not in Europe? I think Jamie gave answers to these questions in his post. I also think that we should use continue to share our experiences and ideas regarding the different approaches to risks because this is one of the reasons why people are learning English -- to get an insight into how people from different cultural backgrounds handle certain situations.
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Torsten
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| Wed Jan 31, 2007 13:52 pm Are you a risk taker? |
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I don?t think that it is the issue of readiness for risk always. Please remember the last election for the German government. One point of the CDU?s public campaign had been that 1500 companies a day applied for the insolvency. Okay some of them might have been elder companies. But the big majority surely had been so-called "Jung-Unternehmer" who had taken the risk of a self-employment and lost.
Far away from any evaluation of what Torsten suggested referring to the IT-market, I think not everyone can found a company just because they own a PC. For me the PC is a tool that can help us to handle some tasks but more important is that there are some special knowledges one can sell-supported by the PC. Additional, to found a company it sometimes would be necessary to get money from somewhere for the first time. And even if you have that money you ask some foundation mentor with the hope to get some support (even if you just need some mental support) they not only advise you to the risks but also take you all the bravery you had before. So it is quite hard.
Sorry, my break for lunch has finished. If you like I?ll tell you more from my experience with starting a self-employment later.
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| Sun Feb 04, 2007 10:23 am Are you a risk taker? |
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Hi Michael,
You say that starting a company and going bankrupt is tantamount to taking a risk and losing? Do you know how many attempts you need until you can create a company that is really profitable and 'successful'? Starting a business and 'failing' is part of the learning process. It's a bit like learning to drive a car. You are bound to kill the engine hundreds of times until you learn how to operate the clutch. I remember reading a statistic that said that a successful entrepreneur has tried out at least 5 different businesses until they finally are able to start a successful one. So with every business you start, you minimize your risk of failing. If you don't try anything and wait for the government to give you a job, you are facing a much greater risk than if you are trying to become self-employed.
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| Sun Feb 04, 2007 23:02 pm Are you a risk taker? |
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| Torsten wrote: | Hi Michael,
You say that starting a company and going bankrupt is tantamount to taking a risk and losing? |
Surely, it?s not always the case. I think, it depends on how much money you inserted for your start. If you start as a shoe-shiner there is not much money necessary and if you aren?t successful the only risk you took (I don?t want being scathing about shoe-shiners) is that you don?t earn enough money to continue doing that. Something very else is if you think about a manufactory where you need some money for the first start. Just to add, I myself thought about a one man engineering/drawing office. It would have required an amount of 20,000 Euro. Not to talk about that you have to overcome the first time and to find clients.
| Torsten wrote: | | Do you know how many attempts you need until you can create a company that is really profitable and 'successful'? Starting a business and 'failing' is part of the learning process. It's a bit like learning to drive a car. You are bound to kill the engine hundreds of times until you learn how to operate the clutch. I remember reading a statistic that said that a successful entrepreneur has tried out at least 5 different businesses until they finally are able to start a successful one. So with every business you start, you minimize your risk of failing. |
And how long it might last. You also have to develop some manners you need to be successful.
| Torsten wrote: | | If you don't try anything and wait for the government to give you a job, you are facing a much greater risk than if you are trying to become self-employed. |
Waiting for some government?s solutions is like waiting for the big lottery-win. There are definetely many better ways to get a chance for earning a life. Like you mentioned waiting for the government is a big risk and mostly don?t lead anywhere. By the way, I myself consider working as an employee anyhow a self-employment where you might earn much money or possibly must work for a small salery. In fact, if you aren?t in a many years lasting employment you take the same risk when you start working for a company and that is what the entrepreneurs are requesting since some years.
What I?m resisting is the statement that the common German avoid risks. I think they can?t.
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| Sun Feb 04, 2007 23:59 pm Are you a risk taker? |
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Hi
| Quote: | | What I?m resisting is the statement that the common German avoid risks. |
Relatively, Michael. Re-la-ti-ve-ly.
As far as I read the thread, the statement was comparative, not "absolute".
When you live in different countries, you communicate with people, observe them in different situations, and, I think, you can compare "mentality", whatever that means.
Subjectively, of course.
I’ve never lived in or even been to Germany, so I have no opinion, but I could compare, for example, the mentality of people living in small towns with the mentality of people living in capitals in several generations.
In the context of the topic - the latter(s) are 'more risk takers'. More flexible and ready to changes, to new roles, etc.
In my subjective view.
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| Thu Feb 08, 2007 18:12 pm Are you a risk taker? |
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Stew, to answer to your question about risk, let me tell you that for me, risk is something that poses a threat to your (or your relatives') life, property or business. I do not think that this is different from one nation to other...
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| Mon Feb 19, 2007 21:37 pm Are you a risk taker? |
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I love to risk ,this is the best feeling...
Mountaineering -this is the best way to who's a risk taker..
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