Business investment low opportunity

2008-01-08T08:25:00.000-08:00

Investment means putting the money in some kind of business with a motive to earn profits. People from around the world invest millions to earn profits that can be used to fulfill all the expenses of the workers, management and their own too. Some people invest billions and trillions, while others invest some millions to earn profits. That is people invest as according to there capacities to invest.

Therefore investment can be both big investment and small investment. People investing big are very few in numbers. Such organizations requires more of a qualified staff and their demand for labor is much low due to latest machinery used for production process. Such organizations do not fulfill the aim of government's to achieve full employment in the country. Whereas small investments organizations keeps big labor force for production process, because they don?t have enough resources to buy big machines. Also the number of small investor's are many times more than huge investor's. Thus by giving aid to such investments governments tries to achieve the goal of full employment in the country.

Therefore by initiating small investment governments of different country tries to give an opportunity to the millions of the entrepreneurs to change their own destiny by earning invest money. And along with them the destiny of other peoples who work with them. Thus the government accomplishes all an all an employment for the citizen's of the country by supporting and subsidizing small investments in the country.

And finally:

The United States government developed the Small investment program or SIP, which is specifically designed for the aid and encouragement of the small and medium investor's in the country. It provides political risk insurance and risk coverages with a quick and efficient underwriting process, and a single application form and no application fee from the small and medium investors of the schemes.

The main objective of the SIP is promoting economic growth and development, financing investment projects, promote employment and sound labor standards in the country. The program is not restricted to U.S only but to all the nations of the developing countries. That is an aid in the development projects of such developing countries is also given.

SIP provides aid to those small scale industries whose labor force is not more than 300 labors or the investment is not more than 15 million dollars. SIP guarantees have a term of up to 10 years and that too can be extended with the discretion of the government. The maximum amount given through this program as aid is Five million dollars.

Since the evolution of SIP in1958, the aid for the growth and development of the industry has been given to almost 100000 small-scale industries. Thus from last fifty years SIP has been playing a pivotal role in the development of the small-scale industry in the country.