What is free enterprise?
by:Ashley Armstrong,Kaylin Nethery
A free enterprise is an economic system . The government generally has minimal ownership of enterprises in the market.
In general, a free enterprise system usually has the following traits or characteristics:
- Consumer preferences and spending, not the government, drive what types of products and services companies offer.
- The government allows you to choose any type of business or field that you are interested in working in or owning.
- The market allows you to buy land, buildings and property with very few restrictions.
- As a business owner, you have the right to set your own prices and determine your own profit levels.
- As a business owner, you have the ability to choose suppliers and other people you do business with.
Opening a coffee shop - The coffee lover is free to open his or her own business in a free enterprise system. Coffee owners can not only choose to open a store, but they can decide what types of coffees to offer, how much to sell the drinks for, the hours they want to be open and where they want to locate the business. Many of these things could be limited or denied in a socialist country that does not promote a free enterprise market.