Discussion Question
At the current time, the U.S. Government is fining oil companies because they are not purchasing ethanol made from cellulosic sources.
An entrepreneur is an individual who systemizes and manages any venture, particularly a business that has a substantial inventiveness and risk. It therefore follows that any entrepreneur needs to own some important qualities for him or her to be successful in business. Notably, a successful entrepreneur should be both innovative and a risk taker.
Despite the fact that the U.S. Government is punishing oil companies that are not purchasing ethanol made from cellulosic supply; there is still an opportunity for entrepreneurs to prosper in this business. First, going by the fact that successful entrepreneurs should be risk takers, it is important to note that those oil companies willing to bear the current risk still have an opportunity to succeed in the business. Most importantly, good entrepreneurs are open minded and innovative. This means that such entrepreneurs are always ready to come up with new ideas and new ways of doing things at all times. The current risk involved in the oil industry therefore should not make the entrepreneurs shy off from the business. They should see an opportunity in it and come up with ideas of how to ensure that their oil purchases are environmental friendly as well. By doing this, these entrepreneurs will avoid conflict of interest with the United States Environmental Protection Agency whose main aim is environmental protection. As such, they still have a good opportunity to be successful in the oil business.
Why don't more entrepreneurs jump into this business, given the lack of supply?
Owing to the lack of sufficient oil supply to meet the existing demand in the United States, it might be correct to think that more entrepreneurs would find the business lucrative. Conversely, this may not be the case in this scenario. This is because most entrepreneurs may not be willing to continue in this line of business for fear of existing risks. Consequently, only those willing to take the risk can jump into the business. Also, not all of them could be able to think of a new way to handle the business. As a result, only few entrepreneurs will end up doing the oil business in the United States.
