Capital resource

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Capital resource
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Capital resources are all goods from which other goods are produced or which are necessary to provide consumer services. They have been used since the beginning of humanity existing (our ancestors were already using special tools to hunt animals). With the development of civilization, the production of goods became more mechanized. Moreover, the number of capital resources was still growing up, which led to labor-saving methods and reduction of business costs.

These days capital resources are at the highest level and there is a huge variety of them, that is why the business needs to make clever decisions, which lead to proper capital resources management. A business should take into consideration[1]:

  • using the most cost-effective capital resources,
  • making decisions about the purchase or lease capital resources,
  • costs of maintenance, access to money and current economic situation,
  • access to capital resources at a lower price,

It is also important to remember that countries with a lower level of economic development have poor capital resources, which contributes to inferior results.

Types of capital resources

It is necessary to point out five classes of capital resources[2]:

  1. Natural resources,
  2. Financial resources,
  3. Manufacturing resources,
  4. Social resources,
  5. Human resources,

Natural resources are all living beings as they are on this planet such as plants, animals, minerals, land and natural energy. This also includes all processes related to the operation of climate zones. Natural resources change with technological progress, as well as changes in the environment and climate. Example: Wind, which is used in the production of electricity.

Financial resources usually rely on supply and demand. They are included savings, loans and wealth, which is necessary to conduct business, maintain it at an optimal level, as well as to grow. Example: Entrepreneur takes a loan to buy a machine.

Manufacturing resources are all assets and knowledge which change row materials into finished goods and services. Manufacturing resources include machinery, knowledge of production processes, designing resources and base on science knowledge and technological development. It depends on these resources whether the production process will be effective and not costly. Example: Modern machines, which are used in the production of car bodies.

Social resources are relations with other people or groups of people, which gives lots of opportunities in business development. Example: The manager has friendly relations with employees, thanks to which they work stress-free, which increases their work efficiency.

Human resources are people's skills which they can use at work and private life to being more productive and strong in solving everyday problems. Human resources are made up of intellect, knowledge, ability to deal with adversity, individual character[3]. Example: Assertiveness helps managers achieve a higher level of team management.



  1. Dieterle D.A. (2017), p. 62
  2. Murray P. (2012), p. 159
  3. Elfring T., Volberda H.W. (2001), p. 149

Author: Milena Kurczek