The word entrepreneur is commonly used in the same sentences as different variations of the verb gamble. These types of people are placed in the same category as gamblers. Moreover, we admire the ones who have gambled and won.
Both entrepreneurs and gamblers can be either unsuccessful or successful. To be the latter, both of the groups have to understand the risks of their chances. They also have to be careful with their timing and even use their skills to make sure their win. So do entrepreneurs gamble? Well, they sometimes do. Even though, even the largest risks tend to require a lot more thought behind them than the mass of the public realises.
When a business venture fails, we state that it was too much of a gamble. However, are entrepreneurs actually gamblers? The answer is not as clear as you would like it to be.
Here are a few of the Entrepreneurs who helped build Las Vegas:
- Steve Wynn is one of the several businessmen in Vegas who can say that he began his career in the gambling industry. The entrepreneur took over his father’s Maryland bingo parlour, where he learned the skills that helped him start a resurgence of hotels in Vegas.
- William Andrews Clark was a copper mining magnate and the senator of Montana. He literally put Vegas on the map when he made it a maintenance stop for his Railroad in 1905. During that time he was one of the richest industrialists in the States.
- Howard Hughes was an aviator, film producer and even a tool manufacturer. He went to Las Vegas on Thanksgiving in 1966 and he occupied the penthouse suite of the Desert Inn until the manager asked him to leave. Instead of that he purchased the hotel, after that he bought $300 million worth of estate in the city.
- Kirk Kerkorian was a financier who performed a Vegas hat trick when he built the largest resort in the city three times in a row. He began by developing the International hotel and then the MGM Grand Hotel twice.
Gamblers seem to love risk
It does not matter if it is races or card games, regardless of how much information gamblers accrue on the cons and pros of the wager they are about to place, there is always a risk. The size of the risk determines the size of the reward. It is obvious to all of us that the longer the odds are, the larger the return on the investment will be. If it proves to be successful.
On the other hand, entrepreneurs usually have a variety of feelings when it comes to risk. Some of them love playing long odds by rescuing companies that are close to crumbling, while others prefer to build slow and successful companies that will withstand the test of time.
A thing that successful entrepreneurs and gamblers have in common is that both of the groups abhor the unknown. For example, if a gambler is at the horse track befriends the jockeys, finding out how horses run, the track conditions and how a particular jockey is feeling, he or she will have better chances to win. Their wagers are less risky and better calculated when it comes to odds.
On the other hand, successful entrepreneurs maximise the local associations, study the market, work with the community and find about their niche to build their organisation towards success. There is no need to mention that starting a business is quite risky. However, entrepreneurs work to ensure that they are taking as little risk as possible.
Entrepreneurs are aware that there are no safe bets
It does not matter how sure a business owner is that his idea will work since there are no guarantees until he opens its doors. Likewise, a gambler can stack their decks in their favour, but the house will still have its eyes on him.
Overconfidence has proven to be a downfall in both gamblers and entrepreneurs. It leads to devaluations as well as a feeling that failure is impossible. When an owner of a business believes that his work cannot fail, they do not see the small problems that they can easily fix. Without the opportunity to do so, these issues will grow into bigger ones. Moreover, too much confidence can lead to the failure of the business and the house sending the gambler home.
So, where is the difference between a gambler and an entrepreneur?
A large part of the difference lies in the social implication of the words. Being a gambler is commonly portrayed as a negative thing. After all, gambling is an addiction, as some punters waste money. When characters in movies wager, the action typically involves setting a plot in which they lose a tonne of money and try to figure out how to get it back.
However, professional gamblers have nothing to do with this stereotype. The ones who make their living from placing bets or playing cards understand the difference between reward and risk as well as the successful venture and the thrill. They believe in luck, but they use skill and carefully considered decisions to make their business function.
Entrepreneur is a word that is still developing cultural connotations. There are people who think of entrepreneurs like the ones who take huge risks on various businesses. On the other hand, others perceive them as a natural version of the venture capitalists. However, an entrepreneur is a person who is running their own business, and it does not matter if they are the head of a multi-national corporation or their own employee.