Economics as a field of study stresses the importance of investment as a potential for the creation of jobs. A number of platforms, like the CAPCO program, are directed at providing viable sources of income for startups and small businesses.
Every country of the world needs to stimulate investment in small businesses and startups if there is to be any hope for the creation of employment opportunities. It is no news that most countries today struggle with one level of unemployment or the other. No country today can boast of full employment of human resources. It therefore shines light on the potentials of companies or initiatives, like the CAPCO program, that provide funding and venture capital.
How investing can create job opportunities
Investing in small businesses and startups can create employment opportunities. Let’s take a look at how it works:
Small businesses often require capital to expand their business operations. This expansion in operations often requires a simultaneous growth in the manpower used in production processes. This then creates job opportunities for individuals within the society. For example, a small company that is into the production of sandals may be looking to expand its operations and greater penetrate the market. If the company is currently able to produce 1,000 sandals per week, and is looking to expand to 3,000 per week; it would require a simultaneous increase in the manpower utilized to create this additional supply. This therefore stresses the importance of programs such as the CAPCO program, which is targeted at raising capital for small businesses and startups.
The creation of jobs and expansion of processes in small businesses and startups can also have a ripple effect on other industries. For example, the sandal company that has now expanded to producing 3,000 sandals per week would require the raw materials to produce this. Therefore, the company that supplies leather to the sandal company now has to expand its operations, implying the need to employ more manpower. This ripple effect can be beneficial to the growth and development of the economy.
With these brief points, one can fully understand the relevance of capital and venture funding for small businesses and startup companies. These companies rely on capital providers for their growth. However, this dependence should not be taken for weakness, as these companies have a lot of potential for shaping the growth of the economy. Importance should therefore be placed on creating a suitable environment where these companies can thrive.