Individual capital

This is term that is given to human capital; and is a very important component in calculation of economic values. It is a collective term that is given to intangible traits of a person, and that are not subject to change over a long period of time. The components that may be considered to be counted under Individual capital are those that may only be dispensed as per will of person who possesses it. These components may be any trait, that would generate economic value, such as skill, expertise acquired through external means, such academics and professional qualification; or even experience, or otherwise; enterprise; entrepreneurial expertise; or personal courage.

This scope of intangible human traits may also include capability of a person to be presented as a moral example; wisdom and knowledge that may not be transferred or even communicated; or if it will be, then it would not be able to render similar kind of economic value; and invention or even trust and leadership qualities, that are not transferrable, but would only be applicable if it is rendered through the particular person. When you reflect on the history of this term of Individual capital, you would find that Adam Smith had spoken of it, recognizing it as an intangible asset that may or may not be transferred; through personal communication. Means of transfer through personal communication may through apprenticeship tools and several other kinds of employment programs, which would be able to transfer knowledge as well as the requisite expertise to do it.

Though the literal definition of term of Individual capital may differ, depending on the particular type of economic ideology, you would be able to decipher a constant factor that remains a part of the theory: that it is a term that represents or embodies all intangible assets that an individual possesses; and that may be accounted for, economically in some way or the other. In fact, there are several concepts in economics that have similar meaning and may also be used in a similar context. These terms may: talent; innate skills, which a person would possess innately, and have not been acquired; ingenuity etc. There are other kinds of capital definitions, which may be used in combination with, or singularly, for determination of economic value: financial capital; spiritual capital; social capital, such as a trusted and closely-knit network of relationships, through which some economic value may be derived etc. Other types of capital may also be: infrastructural capital, which would make environment conducive for productive employment, thereby generating economic value. These may be shelter, personal computers and roads.

However, when you speak of individual capital solely, there are some directly related concepts, that have both legal as well as economic importance. These may be: patent and copyright. Often, a skilled individual may resort to getting a legal stamp, barring usage, by other persons, of his/her skills and expertise; or even manifestations of his/her individual capital or expertise. Along with all other types of capital, individual capital is used for creation of personal as well as corporate wealth and prosperity.