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Do entrepreneurs have traits that are like gamblers? Entrepreneurship and gambling may seem worlds apart, but they share intriguing similarities beneath the surface.
While their objectives and methods differ, research suggests that they share a set of common traits, but in different ways.
Let’s delve into four key traits that bridge the gap between entrepreneurs and gamblers.
4 major similarities between entrepreneurs and gamblers
1. Risk Taking
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 with the risk of competition from already established businesses.
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A gambler might be risking all his money for 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 favorite slot machine, hoping to win.
2. Investment mentality
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 big amount of money base.
He also 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. Research acumen
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 customers are looking for on a mobile phone.
Successful gamblers are also well-informed people who look for information about the games they want to play.
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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. Financial management
While entrepreneurs and gamblers share an inclination for risk, their approaches to financial management diverge.
Research suggests that entrepreneurs often struggle with money management, facing challenges in budgeting, expense allocation, and long-term financial planning.
According to the US Bureau of Labor Statistics, 20% of new businesses fail within the first two years. Generally, new business success rates are around 10% to 20% over the long term.
Many entrepreneurs who start their ventures with inadequate funding, set prices not aligned with the market, or overly optimistic sales projections often find themselves with a failing startup.
That’s why an entrepreneur needs a management team to work alongside and help them succeed in their respective industries. As a business person, 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.
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They can also set the maximum bet they can place when playing a specific game.
Conclusion
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 utilise 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.
Whether in entrepreneurship or gambling, success hinges on informed decision-making, calculated risk-taking, and the adept management of resources.
In conclusion, the parallels between entrepreneurs and gamblers underscore the complex interplay of risk, investment, research, and financial management.
