Turning a problem into an opportunity with the 4 Factors of Production

As an urban entrepreneur – I look at what is the prevailing problem facing the community and economy and transform it into an opportunity to improve that situation (a problem statement identifies the problem than vision and mission statement will execute solution). Albert Einstein said, “In the middle of difficulties lies opportunities.”

A problem is triggered by external factors in the social (urban decay), economic (unemployment)  and political (cronyism) sectors in society. Once you diagnosed the symptom(s) of the problem than you can make smart choices to solve problem by providing the solution (products or services.)

Finally, to manifest your big idea solution you need inputs (factors of productions) to be tools to execution of you big idea problem solving enterprise.

BREAKING DOWN ‘Factors Of Production’

In essence, land, labor, capital and entrepreneurship encompass all of the inputs needed to produce a good or service. Land represents all natural resources, such as timber and gold, used in the production of a good. Labor is all of the work that laborers and workers perform at all levels of an organization, except for the entrepreneur. The entrepreneur is the individual who takes an idea and attempts to make an economic profit from it by combining all other factors of production. The entrepreneur also takes on all of the risks and rewards of the business. The capital is all of the tools and machinery used to produce a good or service.

http://www.investopedia.com/terms/f/factors-production.asp

 

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