What is capital in industry?

Capital Requirements in Industry

In order to make industrial production, the facility must be established first. Facility installation costs mainly consist of building construction costs, permits, machinery, equipment and raw material procurement and other items.

Capital Supply

The capital required for the industrial plant to be produced can be obtained in various ways. Although the use of credit is the first way to come to mind, interest costs and mortgages to obtain loans from banks do not seem to be a very reasonable way, especially for a newly established company. Because the facility has not been established yet, it has not started production and therefore has not earned any income. For these reasons, its use may not be efficient for a new installation.

The capital may also be presented in cash by the founder or founders. This is the most healthy and risk-free way. But this time the concept of time becomes important because the accumulation gained over time is necessary.

Capital Supply by Establishing Cooperative

It may be a better method for people from a certain environment to come together to collect capital in the form of cooperatives and to provide financing with this. But people’s prejudices and unsuccessful attempts in the past have adversely affected the development of co-operatives.

Capital Supply via Stock Exchange

Large-scale enterprises that continue their activities but require additional capital and want to improve their infrastructure are offered to the public through the “stock market ve and acquire capital through the sale of stocks to national buyers. The stocks of well-established, high-income and reliable companies in the public sector are sold to a great extent and there is considerable capital inflow to the enterprise. In this way, both the enterprise obtains capital, and the large masses of the public who can invest in small amounts can earn dividends according to the economic situation of the company.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button