Tag: Capital Formation

Capital formation is the process of gathering and accumulating financial resources to be used for business investments. Capital formation involves both the private and public sector in the process of creating a financially healthy and growing economy. It may also include the development of business ideas in order to attract investments. Capital formation can be a key factor in stimulating economic growth and creating jobs. The process typically includes acquiring or leasing physical assets, expansion of existing infrastructure, improving access to credit, and providing incentives for new investments. By increasing the amount of capital available, businesses can increase production, launch new products, and hire more staff, thus leading to increased economic development.