Etini
Valued Contributor
There are businesses or business approaches that require more labor than capital and they are called labor-intensive businesses. Also, there are businesses and business approaches that require more capital than labor, they are called capital-intensive businesses.
Capital-intensive businesses are hard to start whereas labor-intensive businesses are not that difficult. This is because in a capital-intensive business, you would require large sums of money to start and run. Whereas for a labor-intensive business you can start on your own if you have the physical strength. Labor-intensive business is suitable in rural areas where there is cheap labor.
Capital-intensive business is good because the business is not heavily reliant on the whims and caprices of people. It is difficult for people to hold a capital-intensive business to ransom. It is majority prevalent in the cities. Which one would you prefer between the two business approaches? Which one suits your business between the two?
Capital-intensive businesses are hard to start whereas labor-intensive businesses are not that difficult. This is because in a capital-intensive business, you would require large sums of money to start and run. Whereas for a labor-intensive business you can start on your own if you have the physical strength. Labor-intensive business is suitable in rural areas where there is cheap labor.
Capital-intensive business is good because the business is not heavily reliant on the whims and caprices of people. It is difficult for people to hold a capital-intensive business to ransom. It is majority prevalent in the cities. Which one would you prefer between the two business approaches? Which one suits your business between the two?
