6 Ways Many Philanthropists Will Utilize Capitalism
By definition, anyone participating in private business without the control of the state is engaged in capitalism. While many foreign countries may see capitalism as a negative thing, there is a great deal of good that can come from the exercise of this method of trade. One aspect that can especially benefit from this way of doing business is philanthropy. Governments should be more encouraging of this union between capitalism and philanthropy as it reduces state funding for helping the populace as the business owners will do most of the work.
Funding for Projects
While many business platforms have to adhere to stockholders, many profitable businesses can assist funding projects for humanity using nothing more than net income. This is funds available after all liabilities are addressed. In many cases, the amount of this income can fuel economic development in a community by providing services and other charitable actions. Since this funding is based on net income, there is little financial impact to the business itself.
By filling a need within a community for a particular product or service, employees will be necessary. This provides greater opportunity for families to become self-sufficient as they become more likely to feed and clothe themselves. Opportunities begin to unfold for each employee as skills and knowledge are developed. This allows a person to seek other opportunities that may not have been otherwise available. A healthier lifestyle can begin to unfold as malnutrition and homelessness can be addressed with job creation.
Products that Help
Many philanthropists will be in the business of creating useful products for a community. For example, a telecommunications system where there wasn’t one in the past could connect the populace in profound ways. A pizza parlor, while it may provide food, isn’t exactly a community-building business. Grocery stores, gas stations and other mainstays of society could do exceptionally well in a location that is void of such businesses.
Diversity of Business
Diversifying business prospects and investments can lead to meeting various demands. There is no rule against owning several different kinds of organizations simultaneously. If you have the funding to meet these demands, then you could create jobs while supplying the products and services that a community needs. Whether you create each individual business alone or use a parent company to control all branches, the income from each project can be used to create additional organizations to further improve society.
Affordability of Products or Services
As philanthropists are less concerned about the accumulation of wealth over helping humanity, costs for various products and services can be affordable for those that have little money. While the profits from the business could be put towards other goals, just delivering a product people can actually afford may be more help to the community than you realize.
Chain of Businesses
Businesses can be moved and created easily. As long as the funding holds out, the philanthropist can set up companies in virtually any area that has a demand for products or services. Many large corporations set up shops in areas that have potential to be profitable. The difference is philanthropists can use the profits for improving those communities in return while large corporations are more keen to delivering payouts to stockholders and corporate officers.
Helping a community become more stable and efficient can be profitable. Reading Ehsan Bayat’s page demonstrates how a business idea can be beneficial for a community while creating prospects for business and creating jobs. Capitalism doesn’t have to be a term synonymous with greed as it can provide the funding needed to accomplish a variety of charitable acts such as bringing 21st century technology to an area where none exists.