What is a Capitalist?

What is a Capitalist?

What is a Capitalist? Jonathan Poland

A capitalist is an individual who supports or practices capitalism, which is an economic system based on the principles of economic freedom, private ownership, and the creation of wealth through the pursuit of profit. In the broadest sense, a capitalist is someone who believes that capitalism is a good and desirable system. In its most specific sense, a capitalist is someone who actively engages in capitalist activities, such as starting or investing in businesses, in order to generate wealth.

Capitalism is based on the idea that individuals have the right to own and control their own property, and to use that property to create wealth. Capitalists believe that this system allows for the most efficient and productive use of resources, and that it encourages innovation, creativity, and economic growth.

While capitalism has been successful in creating wealth and economic growth, it has also been criticized for its potential to create inequality and social injustice. Critics of capitalism argue that it is a system that primarily benefits the wealthy and powerful, and that it can lead to exploitation and oppression of the poor and marginalized. Despite these criticisms, capitalism remains the dominant economic system in many parts of the world.

Almost all countries currently employ some version of capitalism with a handful of exceptions such as North Korea. Countries such as Sweden are often mis-portrayed as socialist when in fact they are social market economies, a type of capitalism. Here are some common examples of capitalists.

Family Business

A family business that puts capital such as money, equipment, buildings and land to work to create value. For example, a farmer who puts land and equipment to work to create food. A farmer may also employ others.

Small Business

Individuals who put their own money into a business to generate value from capital and employ people. For example, a restaurant owner.

Freelancers

Small businesses that don’t have much capital such that they mostly offer their labor.

Entrepreneurs

Individuals who create new industries, business models, products, services or ways of doing things. This can be a self-funded small business or a startup that receives funding from venture capitalists.

Venture Capitalists

Investors that fund entrepreneurial ventures known as startups.

Creditors

Institutions such as banks and individuals that lend money to businesses without taking any ownership interest in the business.

Investors

Individuals who put their money to work in businesses that they may or may not control, direct or influence.

Owners

Individuals who own a large portion of a business such that they have accountability for it.

Board of Directors

The individuals who are accountable for a large business.

Executive Management

The individuals who are responsible for a large business.

Captains of Industry

Individuals who are very wealthy and active in an industry such that they have a large impact on society.

Monopolist

An individual who owns or controls a monopoly that has little or no real competition for their major products and services.

Crony Capitalist

A capitalist who influences a government in a way that benefits them personally. Politicians and government employees who engage in this can also be referred to as crony capitalists.

Good Business

A business that honestly pursues three goals: people, planet and profits as opposed to profits alone. This can be imposed on capitalists with regulations or markets for economic bads.

Learn More
Team Management Jonathan Poland

Team Management

Team management involves directing and controlling an organizational unit. Some common team management functions include setting goals and objectives, assigning…

Data Breach Jonathan Poland

Data Breach

A data breach is a security incident in which sensitive, protected, or confidential data is accessed, disclosed, or stolen. Data…

Internal Benchmarking Jonathan Poland

Internal Benchmarking

Internal benchmarking is the process of comparing the performance of one aspect or function within a company to another aspect…

Algorithms Jonathan Poland

Algorithms

An algorithm is a set of instructions or rules that are followed to solve a problem or accomplish a task.…

Channel Structure Jonathan Poland

Channel Structure

Market penetration is the percentage of a target market that purchased a company’s product or service over a period of time.

Operational Risk Jonathan Poland

Operational Risk

Operations risk is the risk of financial loss or other negative consequences that may arise from the operation of a…

Sales Quota Jonathan Poland

Sales Quota

A sales quota is a target for the revenue or units sold that a sales department, team, or individual is…

Collective Intelligence Jonathan Poland

Collective Intelligence

Collective intelligence refers to the ability of a group to solve problems, make decisions, and generate new ideas more effectively…

Supply Risk Jonathan Poland

Supply Risk

Supply risk refers to the likelihood that a disruption in the supply of goods or services will negatively impact a…

Search →
content database

Search my thinking on business, finance,
and the capital markets or start below

Implementation Jonathan Poland

Implementation

Implementation is the process of putting a plan or idea into action. In a business context, implementation refers to the…

Situational Awareness Jonathan Poland

Situational Awareness

Situational awareness (SA) is the ability to understand and effectively respond to a situation by being aware of what is…

Risk Probability Jonathan Poland

Risk Probability

Risk probability refers to the likelihood that a particular risk will occur. It is an important element of risk analysis,…

Cash Flow Statement Jonathan Poland

Cash Flow Statement

The cash flow statement is a financial statement that shows the inflows and outflows of cash for a company over…

Building Trust Jonathan Poland

Building Trust

To build trust, it is necessary to engage in ongoing behavior that helps people trust you. In general, people tend…

Customer Preferences Jonathan Poland

Customer Preferences

Customer preferences are the specific desires, likes, dislikes, and motivations that influence a customer’s purchasing decisions. These preferences complement customer…

Audience Analysis Jonathan Poland

Audience Analysis

Audience analysis is the process of studying and understanding the characteristics of a target audience. This is often done in…

Operations Planning Jonathan Poland

Operations Planning

Operations planning involves identifying and implementing strategies and tactics to optimize the core processes and practices that enable a business…

Risk Estimates Jonathan Poland

Risk Estimates

Risk estimates are predictions or projections of the likelihood and potential consequences of risks. They are used to inform risk…