Enterprising. - The ability to spot a business opportunity and take risks to organise the factors of production. These are land, labour and capital.
Land. - Natural resources. Eg: Water and land on which a business stands.
Labour. - People who work in a business.
Capital. - Money for business purpoese: Machines and premises.
Profit. - Total revenue (Money from the sales.) - Total costs (Rent and wages.).
Characteristics of an entrepreneur.
Why does the government encourage enterprise?
- Provides Jobs.
- Reduces unemployment. - Less Job seeker's allowence to pay out.
- Creates more choice for the consumer.
- Leads to lower prices as a result of increased competition.
- Increases trade.
Factors of production. - These are the four things that are essential for a business to exist. They are land, labour, capital and enterprise.