Why is Capital Expenditure Important for Entrepreneurs?
Capital expenditure is essential for entrepreneurs for several reasons:
1. Growth and Expansion: CapEx allows businesses to expand their operations, enter new markets, and increase production capacity. For instance, purchasing new machinery can lead to higher output and efficiency. 2. Long-term Investment: Unlike operational expenses, which are short-term, capital expenditures are long-term investments that provide value over multiple years. 3. Competitive Advantage: Investing in advanced technology or modern facilities can give businesses a competitive edge, helping them stay ahead of competitors.