How to invest in an economy

Investing in business education

The province of Ontario is trying to come up with ways to invest in the future by investing in science and technology. A major part of that is in ‘green’ energy technology and advanced medical technologies. These industries hold a lot of promise for advanced economies like Canada’s and the United States’. To do this, they understand that the investment needs to begin at the education level in children and not only in the industries and businesses. They seem to have a decent grasp of that concept, so that’s good.

However, as a recent study by the University of Toronto suggests and anyone with a solid understanding of how the world works would say; those investments will not generate the success stories the government hopes for because they are missing the most important investment that will tie it all together and make it a success…business people.

You can invest in all the technology you want but if you have no one that can sell it or manage a company with strong leadership, direction and relevance then it will be all for nothing in the end. Any item is only worth as much as it can be sold for. Therefore, if you don’t have a business person that can package the product and sell it to the target customer then that product is worthless, no matter how good it might be.

Investing in business people and business education will allow you to diversify the investments as well, because business people are found in every industry, in fact, they are the reason every industry exists in the first place. A business person is also more adaptable than someone who is trained in making medical equipment or specific energy technology because if that industry goes belly-up for some reason, then that person may not have the knowledge or skills to succeed in other fields.

A business person does not need to have an expert level of understanding of the product or service he/she sells or manages because that knowledge can be taught during job training. However, if the company fails for some reason, then the business person will be more able to adapt in a completely new setting because business is business no matter what the product or service offering is. We saw a lot of people having a hard time finding a new job during this recession because they only knew banking or how to assemble cars. Understanding business makes it easier to succeed during tough times.

So, when you hear your state/provincial or federal government announce plans to invest billions of dollars in to specific industries, even if they are good bets like science and technology, make sure they realize that it will only be worth it if the investment in business people is at least as, if not more significant.