Factors of Production (AQA GCSE Business)

• Capital includes any man-made resource used to produce goods/services

• Examples include tools, buildings, machines and computer equipment

• Enterprise involves taking risks when setting up or running a business

• An entrepreneur decides on the combination of the factors of production necessary to produce goods/services with the aim of generating profit
  

Land

Labour

• This includes non man-made natural resources and physical locations that are used for production

• Some regions have vast supplies of a particular natural resource and are able to specialise in its production, e.g. oil, wood, fish, iron ore

• This includes human input into the production process

• Labour involves mental or physical effort

  • It can be skilled or unskilled

  • Its effectiveness is determined by education, training & experience workers have