Noah's Template of Enterprise Success- Serial 6

Capital in Perspective

(By Yinka Akintunde)

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Capital is not a new concept, native only to the modern world. Since productivity began, capital has always been a major pillar. Capital in the context of enterprise is any material and non-material input whether in quantifiable or non-quantifiable measure invested in production of goods or services to the end of reaping back commensurate output in higher value. We are mostly familiar with money as a form of capital for enterprise. Truly money is a capital, but many people have brought only their skills as capital into an organisation and have become stakeholders there, being rewarded back in cash and kind based on their input of skills. Whatever you bringto the market place of life as

input in exchange for more value in output is your capital. To make gain is for the value realised as product to be higher than the input, while to make loss is the exact opposite.

This now brings up the concept of value. Capital is value deposit that brings back value to us in its multiplied forms, once it goes through the line of production. Capital can be tangible and it can be intangible. Learning from Noah's enterprise, many values were brought into Noah's production line as capital before he became such a successful farmer worthy of reckoning. Noah probably had no money, and even if he did, money would have been of no value at that material time. The issue would have been a question of what would Noah buy with money and from whom would he?

If for whatever reason our world today has only one family as the occupants, the first thing that would happen is that the concept of demand and supply will crash immediately. For lack of competitive “Tangible capital  trade, all stocks will crash, from NYSE to FTSE or Dow Jones and other major platforms there are. All currency will worth less than the paper they ere printed with for lack of demand. So therefore, tangible capital only has value that is demand driven.

All capital that are demand driven are not absolute in themselves; they are relative in value and subject to devaluation. They are dependent on external value-determining factors and their places are in productivity and not necessarily in their intrinsic worth. As valuable as gold is, its value fluctuates based on this principle. Even skill as a value, it being a form of tangible capital, is driven to some extent by the external value and milieu. That is why being a medical doctor in one part of the world may be of greater value as capital than in another part. This value realisation and other factors drive skill and investment migrations across the globe.