In the study of economics, Investment mean any addition in physical stock as well as stock of finished goods, or you can say any putting money in anything for the motive of profit.I want to know your opinion that what are main challenges for small investors in any type of business now a days, If he/she has nothing after his investment?
I have found it challenging to participate in investing until becoming a "qualified investor". The rules for becoming qualified are very insulting, in my opinion. You basically have to be rich. The implication is that having wealth means you will make good choices, but a poor person with a PhD in economics won't. This rule keeps people from most real investments and instead directs normal people into vehicles like a 401K. Banks love the 401K because you put up 100% of the capitol, take 100% of the risk, all in the hope of receiving 1/3 of the profit. It is a stupid investment if you have other options.
However, there are some loopholes I have used in the past. For example co-ops. The co-op where I grocery shop was looking to expand it's business and needed capitol. I knew it was a good business with a real plan and would be successful. Because I am a member I am also a part owner in the co-op. You can invest in your own business, so I loaned them the money. Technically this was a loan to "my" business. They built the new location and I was repaid with interest. This is something I could not do if it were a normal private business.
There is always gold. Not likely to skyrocket, but also not likely to tank. And you can build up a treasure over time.
Starting your own business is another option. It does not have to be huge. Think of the insane profits of selling snow cones, balloons, and popcorn out of a trailer. You are literally selling water, air, and seeds.
Collecting can work if you have a talent for it. Most items depreciate over time, but some things like quality art, fine guns, collectible cars, etc. can appreciate. But again, this is skill based. If you don't know anything about baseball then you are not going to do well buying collectible baseball cards.
Hope this is a start.