Entrepreneurship Essay

893 WordsMar 21, 20124 Pages
After some research and reading what Wikipedia has to say about entrepreneurship and speculation, I came to the conclusion that their definitions are interchangeable. Logically entrepreneurship and speculation is morphing. I can only think of one possible difference in a particular area but other than that I believe they are exactly the same. Entrepreneurs tend to maximize profits or minimize losses depending on situations and so does the speculators. When speculators foresee that commodity prices are rising, they buy those commodities and wish to sell them at a higher price locking in profits. Looking at it from the other way, speculators will sell their assets or commodities in the present if they foresee prices dropping in the future, thus minimizing loss. Therefore I think everyone in a marketplace is a speculator, either trying to maximize profits or minimize their loss. One might argue that speculators does not add value to the market unlike entrepreneurs, but I think the tasks of speculators which is to buy risks from people who does not want them, is adding value for the sellers of those risks. I believe opening a business falls under entrepreneurial process. In a sense it is also speculating about the future environment of the business and to operate profitably. Speculators provide returns for their investors and so does entrepreneurs. Entrepreneurs sometimes invest their own capital or work with capital invested by other investors, and tend to maximize returns on those investments. Speculators play a similar role in determining the future scenario of the current investment. It can be said that speculation is part of entrepreneurship because entrepreneurs always speculate about the market’s future condition and determine what needs to be done to improve profitability or reduce losses. People might also think that since speculators are not creating any

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