What is the role of capital in business?

Capital is the financial foundation of any business. It refers to the money and assets a business uses to fund its operations, grow, and achieve its goals. Here’s what capital does for a business:

✅ Provides Startup Funds: Capital allows entrepreneurs to buy equipment, lease space, hire employees, develop products, and launch their business.

✅ Enables Day-to-Day Operations: Working capital pays for ongoing expenses like salaries, rent, utilities, inventory, and marketing. Without enough capital, even profitable businesses can run into cash flow problems.