Do entrepreneurs have traits that are like gamblers?
Gambling and entrepreneurship are different in many ways; yet there are so many similarities between the two.
Research has shown that they share a set of common traits but in different ways.
They both had to start somewhere, make some form of investment, and take various risks.
Here are 4 major similarities between entrepreneurs and gamblers.
1. Risk Takers
Both are risk-takers in different ways. An entrepreneur is pursuing a calculated risk based on some market study and probably extensive business plans.
On the other hand, a gambler is also a risk-taker but on a blind risk basis. Moreover, an entrepreneur starts a new business-facing the risk of competition from already established businesses.
A gambler might be risking all his money to one game but with less understanding and studying of the game type and nature. Gambling is one of the riskiest businesses as well because it’s generally about luck.
You only place bets or spin the reels of your favourite slot machine hoping to win.
Both are investors in different ways. A gambler’s investment is usually in the form of bets or wagers and can start with very small sums of money.
An entrepreneur is also an investor with more commitments; he needs money to start and run their business but a quite bigger amount of money base.
And he has to decide how to properly allocate and direct his money across the business operations. Moreover, an entrepreneur needs to manage how the earnings will be further invested again to feed and sustain the business.
Finally, as investors, both entrepreneurs and gamblers expect to get returns from their investments in the form of profit and winnings respectively.
3. Good Researchers
Successful entrepreneurs and gamblers are good researchers. Any person who wants to start a business and remain relevant must have the right information about the relevant industry, stakeholders, goods and services.
For example, an entrepreneur who wants to sell a smartphone needs to gather information about customer demographics and the features the different types of customers are looking for in a mobile phone.
Successful gamblers are also well-informed people who look for information about the games they want to play.
For instance, those interested in online slots need to research the different types of slots and the various features including the number of reels, pay lines, progressive jackpots, bonus features and return to player (RTP) percentage.
4. Excellent Money Managers
At this point entrepreneurs and gamblers might meet or defer. Research states that entrepreneurs are surprisingly not good money managers.
According to the US Bureau of Labor Statistics, 20% of new startups fail within the first year, 34% fail within the first two years and only 25% make it to the 15-year mark.
That’s why an entrepreneur needs a management team to work alongside and help them succeed in their respective industries. As a businessperson, you need to allocate financial resources to various things including inventory, bills, shipping costs, salaries, taxes and many more.
Likewise, successful gamblers reduce the risk of losing everything in their casino account by creating a budget. For instance, they may set the maximum amount they can bet every day, week or month.
They can also set the maximum bet they can place when playing a specific game.
Notably, there are remarkable similarities between successful entrepreneurs and gamblers. They take risks and make investments hoping to get returns.
They are also good researchers, but they aren’t always good money managers who know how to utilize their finances.
Both gamblers and entrepreneurs can be successful or unsuccessful. To be successful, both groups need to understand the risks of their ventures, be careful with their timing, and use their skills to ensure victory, as much as possible.