Sharp Daily
No Result
View All Result
Thursday, November 27, 2025
  • 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

Cytonn money market fund

November 24, 2025
Analysis

Growing Appeal of Alternative Investments in Africa

November 21, 2025
Kenya's first Bitcoin ATM at Two Rivers Mall
Investments

Kenya says no crypto firms are licensed as bitcoin ATMs appear across Nairobi malls

November 21, 2025
Analysis

Employers face criminal charges over unpaid pension deductions.

November 19, 2025
Investments

Why Investors Should Pay More Attention to “Time Arbitrage”

November 14, 2025
Analysis

Navigating money markets

November 10, 2025

LATEST STORIES

Key shifts observed in today’s digital landscape

November 26, 2025

Kenya feels the impact after the U.S. cancels key transport funding deal

November 26, 2025

Vatican addresses African bishops’ polygamy concerns with controversial new document

November 26, 2025

The psychology of spending vs saving

November 26, 2025
Tanzania's President Samia Suluhu Hassan attends her swearing-in ceremony in Dodoma, Tanzania November 3, 2025. © Tanzania Presidential Press Unit via Reuters

Human rights groups petition ICC over Tanzania alleged post-election killings

November 26, 2025

How Interest Rate Hikes Shape Small-Business Investment

November 25, 2025

Kenya’s Retirement Benefits Schemes H1’2025 Performance

November 25, 2025

Understanding midlife crisis

November 25, 2025
  • 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