The factors of production are the resources required to produce goods and services.

There are four factors of production:

• Land - the natural resources used in the production of a product such as water, oil, fields or wood.
• Labour – the people that work in the business such as teachers, joiners, builders or doctors.
• Capital – the money and equipment used to produce the product or service such as machinery or delivery trucks.
• Enterprise – having an idea of how to use the land, labour and capital to make a profit. For example, Arnold Clark, who founded a business selling cars, showed great enterprise.