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.