According to a study conducted by Siam Validus, one of the most prestigious crowdfunding platforms, investing in the rapid growth of small businesses proves to be a lucrative opportunity that far outpaces conventional investments. In the pursuit of wealth, financial freedom, and personal development, investing in Small and Medium Enterprises (SMEs) are becoming one of the most sought-after opportunities, and here’s why:
Capital Preservation
With the current inflation the country is facing today, it is important to capitalize on high-revenue income sources to make up for the loss in value and purchasing power currencies are witnessing.
Historical data demonstrates that over the long run, equities and business ventures have consistently outperformed inflation rates, producing average annual returns that were substantially above the inflation rate.
Potential for Higher Returns
According to Siam Validus, investing in small to medium businesses has been proven to be a highly profitable opportunity, with projected annual returns of up to 5.4%, outpacing conventional investments such as treasury bills, certificates of deposits, and high-yielding savings accounts.
It is important though that you conduct an in-depth analysis to identify businesses with a solid and scalable business model, who share your vision, ambition and ideology to avoid any possible conflicts.
New Income Streams
In today’s financial landscape, building wealth and achieving financial freedom often necessitate capitalizing on multiple income streams. Unlike conventional assets such as gold and real estate, which may serve as stores of value but typically offer limited returns on investment, SMEs present an exceptional opportunity to generate substantial revenue and achieve enhanced ROI. As the key to diversified financial growth, small businesses stand out as a dynamic asset class capable of propelling individuals towards their financial goals.
Personal Development
It’s important to know that investing in a business isn’t “Passive income”, but a hands-on deck experience. It means that you need to explore financial markets, economic trends, and business dynamics, since you’re going to take part in the decision-making process that might define the future of this business.
Moreover, keeping up with your investment, you will develop a stronger grasp of market forces, risk management, and the significance of strategic decision-making. Your investing intelligence is improved by the obtained information, which also equips you to make more educated financial decisions about a variety of aspects of your life.
Socially Responsible Investing
In recent years, ethical and sustainable investing has become quite popular as people aim to align their financial interests with their values. When you invest in a socially conscious business, you’re making a positive impact on your community and the world. Not only that, but you also attract like-minded customers and could even boost the success of the business you’re supporting.
Also, when you back local companies in any industry, it has a positive effect on the local economy. By funding a local business, you’re contributing to a thriving ecosystem that benefits the overall economic well-being of the community. It’s a win-win situation where your investment choices can lead to both personal and communal growth and prosperity.
Conclusion
Investing in a promising business venture is a strategic financial move that offers both financial and emotional growth and security. However, it’s essential to approach business investments with due diligence, and choose a business that shares your values, ambition, drive, and ideology. By combining financial expertise with an awareness of market trends, you can leverage the immense potential that SMEs offer to build a robust and prosperous financial future.
Resources:
Why Investing in SMEs is as Attractive as Larger Firms. (2022, March 23).
https://siamvalidus.co.th/en/investment-en/why-investing-in-smes-is-attractive-eng/
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