The Importance Of Investor Networking In An Economy

By Angel Dudley


Investment is a core issue for business investors. Most of them prefer establishing new firms than reinvesting in the same business. Investor networking has therefore assisted these organizations in realizing their dreams. It involves engaging in such activities that might lead to identification of new opportunities for investment in a new different market. Large multinational companies conduct personal market research to identify market imbalance and structure and offer the best solutions to these. On the other hand, the small companies may not be in a position to effectively and comprehensively conduct a market research.

The funds required to carry out market research may be too expensive to be afforded by the small upcoming organizations. This has therefore led to the formation of investor groups to assist in linking the entrepreneurs to the corporate world.

However, people do invest for different purposes. Large companies, organizations and financial institutions may invest in order to create conducive social environment with the public alongside the financial returns while others invest in order to maximize their wealth. Here the investors tend to use capital in those investments that will harness the power of business.

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.

The cost of establishing new business is equally too high and so for an individual or organization to invest effectively, proper and comprehensive information is required. This is always acquired from these investor organizations. They conduct special meetings and gathering for sharing of knowledge and also training the new comers.

This is therefore achieved by exploiting other avenues and establishing other enterprises in those places.There are several challenges that they entrepreneurs face in the business sector. These include the demographic, legal hurdles, geographical as well as cultural challenges. These challenges affect the performance of the business in their respective destinations.

When employment is created, the household income is generally improved which in turn leads to reinvestment within the society. These groups have helped in developing new ideas that are useful in introduction of new products into the markets.

When conducting a market networking the investors have to take into considerations the legal environment, social and cultural environment, economic environment and even the demographic environment. This is done to ensure that a good market is established before a product is finally launched for full commercialization. It also assist the management in the process of market segmentation in order to produce the products that will create their own demand in the market and increase their sales.

The investments also make the companies to widen their scope of social responsibility to cover their new environments and this in return leads to societal development. The investor networking has created a forum where the investors can interact and understand the consumer demand and new market opportunities




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