U.S. Must Praise Entrepreneurial Risk: Gabelli

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Jan. 22 (Bloomberg) -- Mario Gabelli, chairman & CEO at Gamco Investors and Bloomberg Contributing Editor Jeffrey Hayzlett discuss what makes for successful entrepreneurs and the danger of not taking enough risks in business on Bloomberg Television’s “In The Loop.”

Skin in the game.

What is the difference between steve jobs and michael dell, bill gates and the great leaders who founded their company's? we have to nurture that entrepreneurial spirit and praise individuals that go to work at five in the morning and stay up until 12 at night to create jobs and create a competitive advantage.

We are not doing that in this country.

? how do you do it within that framework, we love entrepreneurial spirits if someone leaves and wants to start their own firm.

We invest in them.

It's ok if they want to leave ? that's what we like.

We want to lower the barriers.

Regulation is stifling our ability to come in and go to work and create the next generation of leaders.

The biggest thing you find is it's not just one thing.

It's a combination of many things.

I will use a crude example but they say size does matter.

In small businesses, they don't -- they take too many risks and many times, the big businesses don't take enough.

It comes down to leadership and it's not just one thing.

You heard those leaders talk about speaking and communicating and listening but when you start to look at it, it's about delivering on the promises they set out with and have an unbelievable focus.

One ceo recently sold his company for $13 billion and he said they have to be irrational.

I thought that was interesting.

At first i was taken aback.

He says we have to be so far out here as a leader in order to drag people to this.

You have to be a little bit crazy -- there is a prime example.

You've got to be willing to make mistakes.

If you are worried about your border shareholders at a meeting and they tell you you cannot do this -- jamie dimon took a lot of great flacco has turned out to be a terrific ceo.

One of the businesses -- one of the biggest reasons we see businesses fail is they don't take risk.

You are implying that outside of a few select ceo's, everybody else is giving lipservice?

I'm not saying that.

You say we are not creating that entrepreneurial leadership?

New companies with venture capital are not being created because of other constraints.

We want to create companies that have access to the capital markets.

When a professionals who need how to raise -- need to know how to raise capital and lead.

Everybody should follow that and create a system that encourages risk-taking.

There are many good examples.

There are leaders doing great jobs.

You look at tony shea and others.

Michael bloomberg -- you look around at great leaders and how they set up a top and he to do things, you start to see that.

I have been impressed.

I work outside and inside his company and you see things -- those kind of things that other companies.

If you go to silicon valley, it is rife with entrepreneurs.

/ it is rife with a lot of people who don't have a clue about running business or have a clue about getting to the next level.

The care about funding but they don't know how to run businesses.

It is a rare read that can make it happen.

-- a rare breed.

If you want to make jcpenney successful, that ceo has to sleep in the back room.

That is what it takes every single day.

You have to drop out of harvard like zuckerberg and gates.

Mario is in the book with funny were stories about how you started off.

I've always known mario as a brilliant fund manager.

But you are an entrepreneur at heart.

You were literally licking your own envelopes.

This is the first time we have met and i am watching offstage and he's got a mood about him that says i am interested and engaged, i am fine.

That is a big thing.

You can see that off the bat.

When you meet with ceo's of companies you invest in, you know within seconds whether they've got it.

Sometimes i go past the personality.

If a prince kisses a frog, it may stay a fraud.

A good as ms.

Run by a ceo, that's the moon, the sun and the stars and america is blessed with great number of ceo's and also we need to encourage more of that by allowing companies to fail and individuals to fill by allowing them to come back in the game.

Small business should become big business.

Those are the mighty mites.

No one is going to die.

The most that will happen to us is a paper cut.

Part of the problem is because we have this structure of the public shareholders and the ceo's are under the gun ,right?

The media is a little bit to blame because we will go after somebody for being a penny off on their earnings.

Are we worried about that?

We are worried about how to grow the business.

It's the nature of the money flowing through consultants into the hedge funds that need short- term dynamics, not the long-term investor.

Warren buffett as a long-term investor and he can go through and mes sup up on bumps on the road.

Thank you both so much.

We are coming back.

Thank you so much.

Coming up, warren parties classing in switzerland as they try to negotiate a peaceful outcome to the cities civil war.

And the billionaires club welcoming sheryl sandberg as it's know as member, find out how the woman who turned down the larry summers offered to be his chief of staff became one of the richest people in the world.

This text has been automatically generated. It may not be 100% accurate.


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