The resources needed to produce goods and services
To produce goods or provide services, businesses need to organise resources and make decisions about how much An estimate of the probability of an unwanted outcome. It depends upon the chance of it happening and the consequences if it did happen. they are willing to take. An A calculated risk-taker who sets up a business in return for financial gain. will do this by making decisions about what to produce or provide using the resources available to them. Those resources will include land, labour and The money and equipment invested into a business..
For example, an entrepreneur who has identified a need for a new gym will require:
- Land - naturally occurring resources, such as land and water. A gym will need land for a physical building.
- Labour - human effort, skills and knowledge. A gym will need staff who can offer advice on health and fitness.
- Capital - equipment and money used to provide goods and services. A gym will need fitness equipment and money to pay staff.
- Enterprise - the willingness to take risks, make decisions and organise resources. All of these will be needed to open the gym.
