However, since innovation moves faster than existing companies can keep up with it, a place arises for the entrepreneur allied to the venture capitalist. The most logical entrepreneurs are companies investing their own surplus cash flow in new products or new markets. Those savings will require a satisfactory return to coax them out of safer stores of value into a risky endeavor. If a project is too big for the entrepreneur to build himself, though, then he has to call on the savings of others – accumulated economic power – to build it. He charges enough to make a profit and keep his machinery in order, but enough less than it costs the farmer to perform the same function so that he can attract business and make a satisfactory livelihood. After him comes the entrepreneur, who, discovering the need for a flour mill, say, dams a stream, builds a mill wheel, sets up his gears and grindstones, and goes into business. The homesteader goes out to a new territory and dedicates his life to clearing the land and making it produce. Of course, the entrepreneurial and risk-taking spirit is how a country is built. He hasn’t written or talked too much about ventures, but he has, as they say, voted with his feet. Here we enter an area of high potential value to society, but also grave risk and uncertain reward – not Buffett’s game at all.
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