11/12/13 May 2022

FACTORS OF PRODUCTION
CAPITAL LABOUR

Definition: Definition:
Capital refers to all money and capital goods used to Labour is all human physical or mental effort used in
start a business. the production of something.

Remuneration: Types of labour:

The payment for capital is interest. Skilled labour: people that are schooled and have a
tertiary education certificate / diploma / degree. They
Types of goods: are trained and can do a certain job / career well.
Capital goods: Unskilled labour: people that are not schooled or
Goods used to produce more other goods or provide have very little schooling. They are not trained in any
a service. specific career.
Consumer goods: Semi-skilled labour: people who have some
Goods used for satisfying needs. - without making education and little training in a certain career but are
more goods. not fully trained.

Types of capital Classifications of labour:

Own capital: Blue collar job: jobs that often make the worker dirty
capital brought into the business by the owner from and he has to wear protective clothing.
his own resources. White collar job: jobs that are often done in offices
Borrowed capital: and the workers can be dressed neat.
Capital borrowed from the bank or any other person. Permanent worker: person hired to work full time.
There is no end time to his employment contract. He
can stop his employment when he retires or resigns.
Temporary worker:
=worker hired for a specified short period of time.
=worker hired to complete a certain task after which
his job is automatically terminated.
Internship: people who are temporarily working
under supervision of a qualified person with the aim
of learning the ropes. These are usually to complete
their qualifications and become skilled workers.

NATURAL RESOURCES ENTERPRENEURSHIP:

Definition:
Natural resources are all things provided by nature to
produce goods and services. They are all natural gifts
to mankind.
Examples: air, wind, water, land, wild animals,
domestic animals, etc.
Definition:
The effort of man to coordinate and manage all
factors of production into a production unit.
Entrepreneur:
The person who takes the risk to start and manage a
business.