Post
Topic
Board Economics
Re: The Higher the capital the higher the returns
by
Issa56
on 05/08/2024, 18:09:05 UTC
From basic economic principles, if you have a higher capital, you will certainly have higher returns compared to starting with a smaller capital. If you're just chasing returns or expecting a huge profit margin but pay slight attention to how much you use as your capital, even when you make a profit, the extent of your profit will largely depend on how much is your Capital.

Normally, if you use big capital to start a business or invest in a business, the money you will get as profit will be much more than someone who uses small capital and expects a big return. I think such a person is just wasting his or her time because the amount of profit will depend on the capital you use to enter the business, so I think the thing is vice versa. In business, capital matters when it comes to getting a huge return because capital is what boosts our profit.
 
But sometimes someone can start a business with small capital, then continue using the profit he is making to boost his capital till the capital reaches his or her target before withdrawing the profit in a large amount.