Factors Of Production - GCSE Business Definition

Factors of production are the land, labour, capital, and enterprise used to create products. Land refers to natural resources available for production, such as agricultural land, water, and minerals. Labour represents the human input, both physical and intellectual. Capital includes the machinery, technology, tools, and buildings used to create products. Enterprise is the entrepreneurial skill and risk-taking ability required to organise the other three factors effectively to drive the business forward. Understanding these factors in GCSE Business is crucial for explaining how businesses operate and make production decisions.