Factors of production
The factors of production are the The equipment, staff and raw materials required by a business to make a product or provide a service required to produce goods and services.
There are four factors of production:
- Land - the natural resources used in the production of a product such as water, oil, fields or wood.
- Labour 鈥 the people that work in the business such as teachers, joiners, builders or doctors.
- Capital 鈥 the money and equipment used to produce the product or service such as machinery or delivery trucks.
- Enterprise 鈥 having an idea of how to use the land, labour and capital to make a profit. For example, Arnold Clark, who founded a business selling cars, showed great enterprise.