Entrepreneurial individuals tend to want to exercise control over their operations.
They like the feeling of being in control of their lives. It’s part of what makes creating a business exciting and rewarding.
The problem is, like a child who becomes an adult, a business can outgrow its founder.
The skills for operating a large business are different from operating a small business. Massive delegation and systems are required. Employees have to be led and eventually developed into leaders. The investment required to finance growth can outstrip the capabilities of the founder and banks, so the business gets investors, initially angels and venture capitalists, and eventually by issuing stock in the stock market.
The entrepreneur has to give up some control in the process. The legal and disclosure requirements for public investors are daunting. If founders, even accidentally, mislead investors, they risk enormous financial exposure and, possibly, imprisonment.
There are very rare exceptions, like Steve Jobs, Bill Gates and Jeff Bezos. They were able to surround themselves with very capable people and were able to learn the skills to manage their operations effectively.
The entrepreneur reaches a crossroads. Keep control and stay small or give up control with the possibility of becoming much more rich?