3 Characteristics Of Free Enterprise System

Bill Gates is the founder and creator of Microsoft, a computer company that creates and sells computer software and has revolutionized the computer industry over the last few decades. Because of the freedoms provided by the free enterprise system, Bill Gates was able to create one of the most successful and influential companies in the world. Three characteristics of free enterprise summarize its importance to the economy and its ability to allow businesses to become successful.

In a free enterprise system, business owners are free to make their own economic choices. For example, if an individual has a grand idea for a business, they can start that business own their own, without facing opposition from the government. In the same way, if an entrepreneur has an excellent plan for a product, they are free to create that product and …show more content…
If entrepreneurs can create products that consumers demand, they can make a large amount of profit and become extremely successful. The reason for this is that since consumers have the ability to earn their own money and spend it however they would like, they buy whatever goods and services they want in whatever amounts they please. Therefore, if a business can figure out what it is that consumers want, in large supply, and give it to them at a price that they are willing to pay, then that business can be sure of success in those regards. Without the free enterprise system and its central idea of supply and demand, Bill Gates could not have become so successful in his business endeavors by selling as much product as he did. Free enterprise enables producers to take advantage of the law of supply and demand and use it to their own benefit by creating the products that consumers want, so that businesses are able to become successful and earn substantial amounts of