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![]() ![]() ![]() In new high tech industries such as software development.This industry will be relatively capital intensive.The industry is relatively complex and will require a degree of specialisation – with workers concentrating on a range of tasks from technological innovation to marketing and design.With a large factory, the firm will then need to employ skilled labour to work and operate the machinery.For mass production, they will need to build a large factory to benefit from economies of scale. They will need to invest significantly in sufficient capital – machines and tools to mix the raw ingredients into the finished food product.The entrepreneur will need land for a factory.This is a relatively labour intensive industry because labour costs will incur a high % of total production costs.The entrepreneur (farmer) will also need to invest in some capital – farming tools, baskets and vehicle to deliver the crop to the market.The company then need to employ workers to look after tea and at harvest time pick the tea leaves.In this industry land is an important factor – it needs to have the right climate and soil to grow the tea. Entrepreneur purchases land to grow tea plants. ![]() Finance – Entrepreneurs needs access to money – either savings or loans from banks to get started.People who start up businesses – Anita Roddick, Bill Gates, Richard Branson.Public infrastructure – communication and roads needed to transport goods across the country.Įntrepreneurs (individuals who bring factors of production together.Workers – full time, part-time, temporary, permanent.Commercial real estate – land to build factories.Agricultural produce – fruit, vegetables, meat.Cultural heritage – if there is a strong tradition of investment and business, it is easier to replicate past business models.Is there trust and working legal systems which enable entrepreneurs to have greater faith in setting up a business Social capital – the coherence of society.It will influence the effectiveness of capital investment. State of technology – some schools of economics consider the state of technological development to be a factor of production.For example, a doctor who spent 15 years studying medicine is more productive than non-skilled workers. Knowledge – human capital – the skills and ability of workers.Entrepreneur – the individual or business who take the initiative to set up a business and employ different factors of production (labour, capital and entrepreneur).Labour – Human workers who are involved in producing the good.Capital – This is a manufactured item used to aid production, for example, machines, factories and computers.Land – this is raw materials available from mining, fishing, agriculture.Factors of production refer to the different elements that are used in producing goods and services.įactors of production are inputs into the productive process. ![]()
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