Chapter 4: Criminal Entrepreneurship
Petter Gottschalk Opportunity discovery is about valuable goods and services for which there is a market. The criminal entrepreneur’s task is to discover and exploit opportunities, defined most simply as situations in which there is a profit to be made in criminal activity. In turn, criminal entrepreneurship yields opportunities for other entrepreneurs such as private investigators (see Figure 4.1). Opportunity discovery relates to the generation of value, where the entrepreneur determines or influences the set of resource choices required to create value. Opportunities to create new economic value exist because of demand for goods and services in illegal markets. Entering an illegal market as an entrepreneur is based on the assumption that there are competitive imperfections reflecting changes in technology, demand or other factors that individuals or groups in an economy attempt to exploit. For example, Ismael Zambada-Garcia is a Mexican drug lord. He is capo (captain) and Figure 4.1 Office of Duluc, established in 1913, Paris, France; photograph by Léo-Paul Dana 33 M2538 - DANA PRINT.indd 33 25/02/2011 08:37 34 World encyclopedia of entrepreneurship head of the Sinaloa cartel in Mexico. He is ‘El Mayo’, Mexico’s number one drug dealer. He climbed to the top by eliminating rivals and victory over Columbian cocaine producers. Zambada-Garcia got indirect help from the police, because police in Mazatlan shot and killed his most powerful rival Ramon Arellano Felix in 2002. The Tijuana cartel by Felix was weakened, while the Sinaloa cartel of Zambada-Garcia was strengthened. Competitive imperfections were created by...
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