Capital Types

Types of Capital

Types of Capital Jonathan Poland

Capital is an asset that is expected to produce future economic value. It is a productive resource that is used by societies, firms, and individuals to create wealth and generate income. Overall, capital is a productive resource that is used to create economic value. There are many different types of capital, and each type plays a unique role in the economy.

Human Capital
Human capital are the talents and health of people that allows them to produce future value. Generally speaking, people don’t like to be referred to as capital. However, this is an important concept of economics that encourages investment in quality of life such as education and healthcare.

  • Cultural Capital
  • Health
  • Knowledge
  • Talent

Relational Capital
Relational capital is the value of relationships and social structures. For example, a firm with a million loyal customers has more productive potential than a firm with zero loyal customers. Likewise, social structures and systems such as society, culture and community all increase the economic prospects of people.

  • Community
  • Culture
  • Investor Relationships
  • Loyal Customers
  • Organizations
  • Partnerships
  • Society
  • Talented Employees

Natural Capital
Natural capital is any natural resource that has value. This is often destroyed due to a situation known as tragedy of the commons whereby firms and individuals don’t pay for their damage to these resources.

  • Air
  • Ecosystems
  • Forests
  • Geological Features (e.g. rocks)
  • Land
  • Minerals
  • Organisms
  • Water

Tangible Capital
Physical things build by humans that have productive potential.

  • Buildings
  • Computers
  • Equipment
  • Infrastructure
  • Machines
  • Vehicles

Intangible Capital
Non-physical things that have productive potential. This includes relational capital listed separately above.

  • Brands
  • Data
  • Knowledge
  • Patents
  • Software
  • Trademarks

Current Assets
The assets of a business that can be quickly converted to cash or that are intended to be sold or used within a business cycle.

  • Accounts Receivable
  • Cash
  • Inventory
  • Marketable Securities
  • Prepaid Expenses
  • Supplies

Financial Capital
Financial capital is cash, cash equivalents and assets with cash value. For a business, financial capital is often classified according to its source. Equity capital is cash that was raised by the investors who own the business. Debt capital are loans from creditors that are used as capital by the business.

  • Current Assets
  • Debt Capital
  • Equity Capital
  • Working Capital

Sales Jonathan Poland

Sales

Sales is the process of establishing relationships with potential customers, discovering their needs and preferences, presenting solutions to their problems,…

Storytelling Jonathan Poland

Storytelling

Storytelling is the act of using narrative to communicate information in an engaging and memorable way. Businesses can use storytelling…

Key Performance Indicators Jonathan Poland

Key Performance Indicators

KPIs, or key performance indicators, are metrics that are used to measure the performance of a business or organization. These…

Working Style Jonathan Poland

Working Style

Working style refers to an individual’s preferred approach to performing their job and completing tasks. This can include factors such…

Advantages vs Disadvantages of Technology Jonathan Poland

Advantages vs Disadvantages of Technology

Technology has brought many advantages to modern society, and has greatly improved the way we live and work. Some of…

Service Quality Jonathan Poland

Service Quality

Service Quality is determined by the value it holds for customers. This value can vary from person to person and…

Adoption Rate Jonathan Poland

Adoption Rate

Adoption rate refers to the speed at which users begin to utilize a new product, service, or feature. It is…

Continuous Production Jonathan Poland

Continuous Production

Continuous production is a method of manufacturing in which materials and parts are continuously processed and kept in motion or…

IT Operations Jonathan Poland

IT Operations

IT operations involves the delivery and management of information technology services, including the implementation of processes and systems to support…

Learn More

Project Stakeholder Jonathan Poland

Project Stakeholder

A stakeholder is anyone or any group that is impacted by a project. This includes individuals or teams who are…

What are Project Estimates? Jonathan Poland

What are Project Estimates?

Project estimates are used to predict the costs, task completion times, and resource needs for a project, often broken down…

Marketing Theories Jonathan Poland

Marketing Theories

Marketing is the process of identifying customer needs and developing strategies to meet those needs. This involves conducting market research,…

What are Field Services? Jonathan Poland

What are Field Services?

Field service involves managing and deploying resources and assets at customer, public, and third-party locations, as well as providing services…

Examples of Competency Jonathan Poland

Examples of Competency

Competencies are the various traits and capabilities that enable an individual or organization to be effective and successful. These may…

Economic Opportunity Jonathan Poland

Economic Opportunity

Economic opportunity refers to the support that a society provides to individuals that enables them to thrive in the economy.…

ResMed Jonathan Poland

ResMed

ResMed is a global medical equipment company that provides innovative solutions for the treatment of sleep-disordered breathing, including sleep apnea…

Cell Production Jonathan Poland

Cell Production

Cell production is a manufacturing approach that involves organizing work into small, self-contained units or cells. Each cell is responsible…

Product Durability Jonathan Poland

Product Durability

A durable product, often referred to as a durable good, is a product that does not quickly wear out or,…