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Why do Entrepreneurs Expand as soon as they receive funding than making Profits.

I have been part of the industry where an entrepreneur proposes an idea, sometimes prove them in a niche market and once the funding is done, they go for expansion and burn cash instead of making profits on their idea. The Venture Capitalist theory is 4-5% success on their 100% investment. This is pretty low compared to business concepts. People in employment are always in look-out for another opportunity and they never settle.
How can we expect the Economy to be Stable if a large population of such employment are always dynamic and stressful.


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  • Oct 5 2012: I agree with you that they are game makers. However, what is the use of having only 10 good chicken in a lot of 1000 chicken... the probability of the 10 good chicken becoming bad are high.

    Instead, invest in 10 chicken only and make it as good as possible that it can be as useful as 1000 chicken.

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