Venture Capitalist or an Angel Financer

If and one day I would win in the lottery, I will be a capitalist for a cause. No, I am not a hungry selfish businessman trying to exploit the masses or something like that. Neither would I become a hypocrite and say that I would be an angel financer and then satisfy my hidden agenda alongside the process. I would rather place my intention up front. The things I need, as well as the things I want in life ought to be my priority. Afterwards, maybe then I could decide for once, a long term answer to my thoughts on winning a lottery.

Easy money as they say, it could also be easily lost if managed poorly. One can only think of logical ways to spend such money. As for me, I would rather have my own business and help those who need it, through my business. The importance of having a business right in the comfort of our homes or community could probably be one of the best things that could happen to us in the objective of gaining economic progress. For instance, community businesses in the local community are an application of our society’s concept of progress.

It is here, that we learn to apply the theories that we know and put it into good use. Community businesses are usually of low risks because of the financial resource may depend on the type of business as well as depending on how the person would be able to allocate his or her finances in the most efficient manner (Kotler, 2003). It is also here that we learn how hard money is to find. Having a business right in our backyard could gauge in a thought of austerity as well ourselves could be able to learn the ins and outs of money making.

As they say, we only begin to appreciate things only of two reasons: first, we gain economic growth through the increased consumer spending. It is through such a likeability of terms that the business venture that we undertake would eventually be successful. At first it could be hard to notice, but later we would be asking if the task of finding out a guide that could control us in our local expenses could really be in our hands. Seldom do we understand that even with the most basic of economic units, we could obtain economic progress (Kotler, 2003).

This happens as we establish local business, we thereby encourage consumption growth. This consumption thereby endorses the increase of cash flow as well as profitability in the market. The higher the cash flow in the system, monetary agencies such as the federal Reserve would raise interest rates so as to urge the people to save their money in banks and vice versa. Once we achieve such goal, we also affect the economy, in our own small way. It is also in this form of consumption that we tend to affect cash flow.

A chief international organization such as Acme tries to find out the comparative movements and magnitudes of global capital investment. One way of depicting whether the resources of the developed states are coming across their track to the less-industrialized and rising markets is through the implementation of the Articles of Agreement in 1997 according to Brune (2001). A sign of assets account freeing up which tried to diminish rule obstructions to the acquisition and transaction of capital among countries moved the world during that time.

This inclination encouraged the provisional board of the International Monetary Fund (IMF) to advocate the Articles of Agreement on a novel official dedication to assets account liberalization to raise collective wellbeing (Brune, 2001). Fundamental economic presumptions puts forward that through this, the prospect to achieve the returns on saving, to have a loan of at the most auspicious rates, and to broaden the horizons in eliminating certain peril will arise.

The latent bearing of this means is emphasized on the significance of monetary advancement of trade and industry. There are several avenues through which assets of industrialized nations can add to the progress of the fiscal structure of less-developed and emerging markets. Introduction to global competition may develop the effectiveness of those markets through the establishment of worldwide principles over and above by means of the possible risk of superiority created by overseas mediators.

Klein & Olivei claimed that the developed countries’ bank auxiliaries may extend their total dimension of their general banking scheme and initiate pecuniary modernism that absolutely widens the extent of their services in eventually support capital inflows and considerable economies of scale of less-developed and emerging markets (2001). However, the aforementioned advantages are barely quite fulfilled if the guiding principle takes place in the existence of sufficient organizations and positive macroeconomic courses of action (Klein & Olivei, 2006).

There were said to be some critical distinction between less developed and emerging markets differences in accordance with monetary aspects like revenue proportion, variation in actual market capitalization, and cost returns quotient. Emerging reserves markets have turned out to be gradually more imperative in intercontinental portfolio administration recently (Buckberg, 1995). As further stated by Buckberg, the multivariate technique of the differentiated study points out that the two markets are indeed different.

In the 1990s, Fuss wrote that the premise still maintained that the monetary features of emerging markets differed from those of less-developed ones for the reason that the growing liberalization of pecuniary markets enhanced the class of the organizational communications. This has occurred in most of the measured less-developed markets, although it is unpredicted that there subsists a insubstantial confirmation of the variance of the attributes of the two series of markets at the last part of the 1990s (Fuss, 2002).

Particular business enterprise assets or equitable investment systems are not likely to be suitable for a quantity of the fiscal essentials of minor level ventures in mounting states taking into account the positions, functions and restrictions of those assets markets. It is intricate enough for the less-developed market capitalists to recognize the value of the investments of developed nations and any credit that they may have expected with their individual capital. The peculiarity flanked by short and long term sponsorship adjoins a supplementary impediment.

The accumulation of external capital and the related requirement for integration, mutual accountability and shares are really hard to be convenient unlike for the emerging markets (Kitchen, 1992). So again, if I would win the lottery, I would do these things keeping in mind that if I would be an instrument for the development of my community through my business, I could become more than just an angel financer. As Adam Smith said, “all of us will pursue our own goals, if we put this together, we will end up on the same goal of development.

Reference:

Brune, N. (2001). THE POLITICAL ECONOMY OF CAPITAL ACCOUNT  LIBERALIZATION Retrieved June 19, 2007, from https://www.nd.edu/