In the study of economics, Investment mean any addition in physical stock as well as stock of finished goods, or you can say any putting money in anything for the motive of profit.I want to know your opinion that what are main challenges for small investors in any type of business now a days, If he/she has nothing after his investment?
In functions of production, the lesser the capital we have invested, the smaller amount of production we will gain. A small investor usually experience this scenario where his capital is hindrance to attain his commercial goals. There are times that we want to increase the production but we can't afford the labor and machineries.
Small investors experience shortcomings because the capital is not suitable to the products that we need to cope up. The growth of the firm depends upon its capital. If we have a small amount of investment then the span of growth is too slow compare to the people who started in a large scale.
However, our risk as a small investor is too low compare to the large investor. In summary, there is an advantage and disadvantage of being a small investor, the outcome of production not just depends in capital but how do we manage our investment.