Four Factors That Drive Business
Year 7 Economics and Business Understanding the Building Blocks of Production
What Makes a Business Work?
Think about your favourite local café or shop What do they need to operate successfully? Write down 3 things on a piece of paper
The Four Factors of Production
Land - Natural resources like soil, water, minerals Labour - People's work, skills and effort Capital - Tools, machines, buildings, money Enterprise - Entrepreneurs who bring it all together
Land vs Labour
{"left":"Natural resources we use from the environment\nForests provide timber for furniture\nRivers provide water for drinking and farming\nSoil grows crops for food","right":"People working to create goods and services\nFarmers growing crops\nTeachers educating students\nShop assistants helping customers"}
Capital vs Enterprise
{"left":"Tools, machines, and money used to make things\nOvens in a bakery\nComputers in an office\nDelivery trucks for transport\nBank loans to start a business","right":"The people who organize and take risks\nSomeone who starts a new restaurant\nA person who invents a new app\nLeaders who make business decisions\nRisk-takers who invest their time and money"}
Group Challenge: Factor Detective
Form groups of 5 students Each group gets assigned ONE factor Brainstorm examples from your daily life Create a poster with your examples Present to the class in 10 minutes
How Factors Work Together
"No business can succeed with just one factor. Entrepreneurs need to combine Land, Labour, and Capital to create value."
Café Case Study: Putting It All Together
Imagine you want to open a café in your local area What LAND do you need? (location, water, electricity) What LABOUR do you need? (baristas, cleaners, manager) What CAPITAL do you need? (coffee machine, tables, money) What ENTERPRISE do you need? (someone to plan and take risks)