General objectives
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| Growth entrepreneurs are driven by the competitive nature of business. They get into business for themselves to create something of long-term value and they continually seek to make the business bigger and more competitive. They usually need to make a larger investment in the business than lifestyle entrepreneurs, both in terms of upfront capital investment and the time they invest in managing the business as it grows. They often take on more risk than lifestyle entrepreneurs but that risk comes with financial rewards if the business succeeds. The consultant who keeps hiring more associates to service more clients, the media entrepreneur who is continuously launching new products to sell more advertising space and the estate agent who is franchising her operation to facilitate growth are all examples of growth entrepreneurs.
Speculative Entrepreneurship and innovation do not always go together. In many cases, one can find the speculative entrepreneur whose goal is to exploit profit opportunities using any means (destruction of the environment, production or sale of harmful products). Such persons do not create wealth but transfer wealth (capital flight), usually underpay their employees, treat them as objects of production (more interested in the work rather than the worker), and are only interested in ventures if it benefits them without regard to or concern for future generations. Such entrepreneurs can be described more as opportunists. Speculative entrepreneurs push their chips towards big opportunities that they have little control over, but seem to be aligned with macro trends and cultural interest. They are inclined to follow and exploit herd-like behavior, promising new technologies, or up and coming fads. These entrepreneurs are perfectly fine not having control over the market. They typically operate on a much, much shorter timeframe—they think in months versus years. They usually do not want to build a self-sustaining business; instead, they are seeking to dive head first into an opportunity, reap the reward, and get out and onto the “next big thing” quickly. This type of entrepreneurship is where the venture’s time frame is shorter. The objective is to show the potential of the business and then sell it. Research shows that speculative entrepreneurship results in opportunities even when there is no new information. Mises (1949) describes the entrepreneur as recognizing opportunities in the environment for profit. The entrepreneur uses these opportunities to restore market equilibrium by ‘promoting and speculating’. They seek to exploit fleeting (short lived) market opportunities. They look to use momentary market opportunities. These entrepreneurs operate the business for a shorter time. Speculative entrepreneurial venture is characterized by showing potential of the business and after some time sell it. Next Notes…
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