The Importance Of Investor Networking In An Economy

By Angel Dudley


Networking simply means looking for opportunities and new avenue to be explored. Investor networking therefore involves the aspect of looking for new market opportunities for their investment purposes. It may also means the act of linking one business to another in order to create a proper understanding with an aim of investing in the long run. The full time as well as small investors engage in looking for new opportunities where they can be able to invest their surplus capital.

These investors usually have very strong entrepreneurial inspirations ambition and the passion to invest. They usually have very strong groups and organizations where they occasionally meet to share their experience and ideas. They also meet with others who have different thoughts. They organize events periodically for the same. They also use the same opportunity to offer advice and training to the new upcoming investors on how best they can invest their profits effectively.

The groups are formed according to the type of business one engages in. For instance the banking sector will form their group, education sector will also form their group to cater for their need. In these groups, they are able to get knowledge about the markets from where there members come from. Through sharing and thorough interactions they are able to get the discrepancy in the respective markets.

New businesses provide employment opportunities for the unemployed hence reducing the social vices such as insecurity and poverty. It increases in the number of goods and services being produced within the economy leading to low market prices of commodities.

With the rise in the number of players coming into the business, competition has become more stiff and hence only the smart investors are able to thrive well in the market and ensure their continuity of the enterprise. The major aim of the business is to maximize profits.

Investment is one of the key pillars that drive the economic development and social empowerment in the community. Societies with large number of investments often obtain commodities at cheaper prices, they also enjoy the benefits of clean water and other social responsibilities offered by the businesses.

For instance any change in the legal environment such as VAT act will require the business to comply and this might affect its performance negatively especially when the result is increase in the prices of then commodities.Investments sparks emergence of new industries in those areas where it is done. This leads to growth of the economy since it increases the supply of good and service in to the economy.

The increase in the supply lowers the market prices of commodities hence consumers will have to consume less of their salaries and re invest the surplus income.New investments also lead to increased number of business enterprises hence creates employment opportunity for the households. This in effect leads to increase of income in the economy.

Investor networking has enabled the business firms develop products that satisfy the consumer demand and expectations. On the part of the supply, it has enabled the management exploit new markets to increase the sales. This has lead to increase in the amount of revenue for a business organization




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