For the amount of capital required, starting a business has high income and capital gain potential yet requires far more time from the owner; investing in stocks has limited income and capital gain potential but requires little time by the investor.It may be a good time to reap the benefits of small-business growth and opportunity as a private investor, too. ... Investing directly in a small private business can deliver a much better return than a traditional mutual fund or index fund, but your potential for losses is greater, too.