Sharp Daily
No Result
View All Result
Tuesday, January 20, 2026
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

Profit without loss: Can everyone in the economy win?

Hezron Mwangi by Hezron Mwangi
February 13, 2025
in Investments
Reading Time: 2 mins read

The idea of universal profitability can seem contradictory, especially in a competitive market. Does one entity’s profit inherently mean a loss for someone else? Or can all participants in the economy simultaneously thrive? To answer this, we must consider the fundamentals of profit and its relationship to consumption and production.

Profit, in simple terms, is the surplus left after deducting costs from revenue. Many people might assume that profits are part of a zero-sum game, that for one business to gain, another must lose. However, this is not necessarily the case. Markets are not zero-sum because they operate on value creation.

Take a simplified example: A farmer grows KES 500.0 worth of maize and sells it to a miller for KES 1,000.0 The farmer profits by KES 500.0 The miller processes the maize into flour and sells it to consumers for KES 1,500.0, earning a profit of KES 500.0. In this chain, both the farmer and the miller make a profit, while consumers receive flour worth KES 1,500.0 that satisfies their needs.

The key here is that consumption drives the system. Consumers are willing to pay because they derive utility, happiness or satisfaction, from the goods and services they purchase. This utility is non-monetary but crucial, as it ensures that everyone along the production chain benefits without necessarily implying losses for others.

RELATEDPOSTS

No Content Available

Moreover, natural resources and innovation can expand the economy’s productive capacity, allowing profits to grow without taking away from others. For example, in Kenya, a new irrigation technology could enable farmers to grow more crops, increasing their profits while reducing food costs for consumers. This kind of value creation benefits multiple stakeholders simultaneously.

However, while it’s theoretically possible for everyone to make a profit, real-world conditions such as unequal access to resources, market inefficiencies, and external shocks often limit this outcome. Additionally, in some situations, profits for one entity, such as monopolistic corporations, may come at the expense of smaller competitors or consumers.

Profitability is not inherently zero-sum. Markets can enable mutual gains through value creation, utility derived from consumption, and the efficient use of resources. Yet, achieving universal profitability requires addressing systemic inequalities and ensuring that the benefits of growth are broadly shared.

Previous Post

Smart couples invest together: The role of money market funds in relationships

Next Post

Investing in Kenya: Value and growth strategies on the Nairobi Securities Exchange

Hezron Mwangi

Hezron Mwangi

Related Posts

Analysis

Kenyan investors allocated 60 percent of KPC shares in landmark IPO

January 20, 2026
Analysis

Kenyan investors can buy up to 60% of 11.8 billion KPC shares at Sh9 each

January 20, 2026
Investments

Mobile Money Meets the Stock Market

January 16, 2026
Analysis

Self-Insurance by Another Name: The Rise of Investment Based Risk Management

January 9, 2026
Analysis

Kenya Faces Sh45 billion blow as Trump withdraws US from 66 global organizations – Impact on Nairobi’s UN hub

January 9, 2026
Analysis

KPC NSE listing set to open state-owned energy giant to public investors

January 6, 2026

LATEST STORIES

Kenyan investors allocated 60 percent of KPC shares in landmark IPO

January 20, 2026

Kenyan investors offered majority stake in Kenya Pipeline Company IPO

January 20, 2026

Kenyan investors can buy up to 60% of 11.8 billion KPC shares at Sh9 each

January 20, 2026

The role of insurance in protecting families and businesses

January 19, 2026

The importance of location in property decisions

January 19, 2026

Safaricom plans rollout of tokenised Wi-Fi and prepaid fibre with flexible internet payments in FY2026

January 19, 2026

How banks help small businesses grow and stay sustainable

January 19, 2026

Fear as a market force

January 19, 2026
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024