Business and risk: Who has the most to lose?

Who takes the risk in a business venture—the CEO? Stockholders? Employees? When it comes to compensation levels, a common argument is that corporate officers and big investors deserve high financial compensation because of the high risks they incur.

How does that compare to the risks taken by a small-business owner?

Paul Kumler, president and co-founder of KTM Solutions, Inc. (a proud small business!), knows the risks and obstacles that come with starting your own company. To others in his position, he says:

“For those who took the plunge, I can empathize with risk calculations, the struggles, the exhilarating highs of success, and the depths of despair when times are tough. My hat’s off to all of you who have taken the plunge, considered the risks, and are doing the hard work daily to keep people employed and provide a valuable product or service to your customer base. Small business truly is the backbone of America, and it takes a backbone to take that leap of faith.

In a recent opinion piece for South Carolina Manufacturing, Paul compares the situations of the small-business owner and the Fortune 500 CEO, examining who really takes the big risks.