Entrepreneur or Investor; who is more important?
The world needs more entrepreneurs because they are innovators and inventors who create a better future for many.
But can entrepreneurship flourish without investors?
So who of an Entrepreneur or Investor is more important?
They are both important because if a business didn't have money then, no profits would be made and, if a new idea wasn't thought of then, there would also be no profit made as the business ideas would not exist. (heragenda).
Normally entrepreneur start with money from, family, friends and .fools. Each year between 35-40% of start up ventures receive capital that way.
So both entrepreneurs and investors are required for businesses to emerge and jobs get created.
But they do not have the same responsibilities:
An entrepreneur launches a business intending to invent or innovate a certain good or service while being willing to accept all the risks of failure to generate money.
An investor provides capital to a business in exchange for the expectation of future gains and profits.
(Investopedia)
The profiles of an entrepreneur and that of an investor differ, but more important is that while the entrepreneur is obsessed with one business, an investor has two options; direct ownership through entrepreneurship or invest through the stock markets.
Over the years the % of investment going into local entrepreneur as compared to the stock exchange has been increasing though since the pandemic there has been a reversal of that trend
If the investor go only according to the capitalistic measure then it is a no brainer that money will go to the markets rather than to an entrepreneur. An investor may discover the rare bird still in its garags or bedroom. But we all know that the fact is that a high percentage of entrepreneurs fail and money gets lost. Those who succeed make small profit.
Encouraging and supporting entrepreneurship is honourable, the reality is that for serious money to flow to entrepreneurs, local and central Governments' support and finance already in place must be continued and expanded:
Grants, finance and loans,
Business support e.g. mentoring or consultancy,
Funding for small and medium-sized businesses and startups,
Financial assistance in employing people,
Free advice on money and tax, business and self-employment.
While direct investment in business is the quickest way to get an entrepreneur up and running, there are other ways of supporting those who have already started. We can make an Impact in our Local Economy by:
Join a Giving Circle.
Shop Local Grocers.
Pledge to Local Funding Initiatives. ...
Attend Concerts of Local Artists. ...
Support Community Events. ...
.
So becoming an investor in entrepreneurs need not just be in the form capital injection, it can be by making some smart and strategic decisions on how our time and money are spent.
#entrepreneurship #investment #community