An entrepreneur would find it desirable to hedge foreign exchange risk because the profits from the entrepreneurial venture are a significant part of the entrepreneurs wealth. Hence, if forward rates are unbiased predictors of future spot rates, risk-averse entrepreneurs will choose to hedge their future foreign currency cash flows because doing so will reduce the variance of the flows without changing their expected values in the domestic currency. Therefore, reducing the variance of future profits would increase the entrepreneurs expected utility.

question:

Do you think investors should also do the same in order to avoid any variance in their expected future return? what makes investors and entrepreneurs different in this respect?