Private equity is essential for building strong private sectors that create jobs, improve living standards, catch up with trends and generate tax revenue. The importance of stock investors continues to grow. Contrary to the popular myth that private equity firms weaken businesses by stripping them of assets and loading them with debt, private equity firms create businesses; they do not destroy them. Over the past 30 years, private equity has added assets and value to their respective portfolio companies. A 2008 study by the Boston Consulting Group found that since the 1980s, operational improvement as a source of value has doubled, to more than a third of value creation. Companies still haven't realized that private equity is a long-term investment that takes years to reap the full benefits. This long-term focus aligns the interests of the private equity firm with those of the company it is purchasing and ensures the company has lasting success. Starting and building a successful business is an ambition of many entrepreneurial minds and has long been the primary source of employment. creation. Although talent and ambition tinged with quality are rarely found, they are found nonetheless. This is where many private equity firms fail to capitalize on the entrepreneurial potential of their respective markets: they don't have the time or resources to waste on an idea. There is a significant gap between the circle of investors and that of emerging SMEs. Skepticism is on both sides, but the fact remains that SMEs are hesitant to ask for investments because of their approach to investment, the idea that they are beholden to their investors. We do not rule out the fact... middle of paper ...... years. Innovation is key to creating and bridging the gap between venture capitalists/angel investors and potentially the next big startup. Innovation is expensive by default, but the returns are better than the average blue-chip company. An initial investment of $30,000 requires much more than your $30,000, it requires a precise mix of intellectual and technical resources. Seed is the first stage of venture capital financing. They are often relatively modest, in order to help founders get back on their feet, build their management team, develop their product, develop a business plan, etc. A properly regulated environment will allow investors to be less skeptical and focus more on the development of these ideas rather than the return on investment, which is the ideal scenario for the development of a robust economy..