There's tons of people in Hollywood that are trying to make movies. Some of them are able to convince someone with money that it's worth giving them a shot. The big movies pay for the little ones. I've heard Adam Carolla talk a lot about making his movie "The Hammer" and it had a budget of 1 million and came close to breaking even since he was able to sell the DVD on his podcast. Even if the movie doesn't make money, it's a way to develop actors/directors/etc.