These are Entrepreneurs Success Factors. This subject matter is related to factors of production definition and the characteristics of factors of production. Others include factors of entrepreneurship development, factors that promote entrepreneurship, factors influencing entrepreneurship, key success factors of entrepreneurs and environmental factors affecting entrepreneurship.
Time is changing! Environmental factors are changing too. Therefore, economic thinking and reasoning is also changing and these have actually affected the way factors of production is now seen and classified.
The classical economists handed over to us four factors of production which has always been the bench mark for economic resources allocation and for analysing economic operations. These four factors are land, labour, capital and entrepreneurship. In this model everything natural (physical and non-physical) is classified as land, while entrepreneurship is just seen as the risk taker. But now we know that there are a lot associated with these two factors. Technology and time are some of the factors that are changing this model.
THE FACTORS OF ENTERPRENEURSHIP/21ST CENTURY FACTORS OF PRODUCTION:
1. LAND: In as much as this encompasses all natural resources, here it’s majorly seen to relate to Space, and Location. Good space of land and location is very important to the success of your business. If you don’t have enough space to do your business that will be a limitation. Again, if you locate your business where you will not be able to easily access your market, materials, or supplies etc., your business will suffer some losses.
2. LABOUR: This refers to workforce. Only applicable workforce should be your concern here. Only employ the labour you need. Employ only those who are productive, that means efficient. Efficiency here means those you can control, who can work better with your tools considering your timing.
3. MACHINES: This encompasses what we call technology. Ensure you have modern tools in your business. This will enable you produce quality modern goods and services in right quantities.
4. MATERIALS: In relation to machine/technology discussed above, there are also modern materials out of science and technological developments. Right materials mix produce right goods at right time and right quantities.
5. MONEY: Money is referred to as cash and its equivalent. In the classical economic theory, this is called Capital. Today this include all factors/resources that can easily be turned to cash. This include your bank loan arrangements and credit facilities. Without money you can’t do good business.
6. TRUST: If we take this to mean Faith, Reliance and Dependence, it then means having faith, reliance, and dependence on your ability and those who work for you and your network or value chain will do great things for you. You should know that where these are lacking, the business will not flourish.
Source: www.completefmc.com for more details.