What importance does entrepreneurship hold in the list of the five factors of production?
Businesses use five factors of production: land (natural resources), labor (workers), capital (buildings and machinery), entrepreneurship, and knowledge. Of these, the most important are entrepreneurship and knowledge (managed information) because without them land, labor, and capital are not of much use. • Economic factors affect business by increasing or decreasing the risks of starting a business. • What are some things that the government in developing countries can do to lessen the risk of starting businesses? The government may allow private ownership of businesses, pass laws that enable businesspeople to write contracts that are enforceable in court, establish a currency that’s tradable in world markets, help to lessen corruption in business and government, and keep taxes and regulations to a minimum. From a business perspective, lower taxes mean lower risks, more growth, and thus more money for workers and the government. • Adapting to technological change is one of the most im
