Under the Unified Theory of Capital Management, there are two forms of capital - financial capital and human capital. Entrepreneurs love to focus on things that they control so they will mostly gravitate towards enhancing their human capital through education, experiences and creation of relationships. However, entrepreneurs will likely ignore capital management that involves objectives that are out of their control. These objectives include financial capital management through the stock market. It is imperative that entrepreneurs balance their capital management and they can do so by making diversified and conservative decisions with their financial capital.
See Carl Richards, "The Surprising Money Habits of Successful Entrepreneurs," New York Times (October 10, 2011).
Posted by Marc Tan, Associate Editor, Wealth Strategies Journal.

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