What Are the Four Factors of Production?

What Are the Four Factors of Production?

In economics, land, labor, capital and entrepreneurship are known as the four factors of production. They are given this label because each plays a role in the production of business and industry that impacts the economic conditions in a society.

"Land" refers to a company's ability to find suitable real estate or property that is allows for use of natural resources or production capabilities. "Labor" refers to the employees of a business that manufacture or sell goods to generate revenue. "Capital" refers to the money and assets a company has to invest in production. "Entrepreneurship" is the innovative drive and thinking that allows for the conversion of land, labor and capital into profitable production.