The Free Enterprise System
What Freedoms Do You Have? Speech Religion Assembly What else?
Free Enterprise System You are free to own property and start a business in an economy based on the free enterprise system.
What is an Economy? An economy is a system for producing and distributing goods and services.
What are Goods? Goods are THINGS you can buy, like shoes, soccer balls and CDs. What are some other goods?
What is a Service? Service is WORK that people do for others. Hair stylists, plumbers and doctors sell their services. Can you name others?
O.K.…back to Free Enterprise You can decide what product you’ll sell and how much money to charge for it.
History and Free Enterprise Our nation was founded on the idea of freedom. Americans have been participating in the free enterprise system for centuries.
History and Free Enterprise Colonial Times s When British colonists first came to the New World, they settled in three main regions: New England, the Middle Colonies, and the Southern Colonies.
History and Free Enterprise At first, colonial towns were very self sufficient. The businesses that grew provided a living only for the people that lived in them. Jobs consisted of shoemakers, blacksmiths, printers, millers, dressmakers and others that people needed for daily living.
History and Free Enterprise But, as the population increased, the colonies began to develop goods that reflected the unique aspects of the regions. The dense forests and deep natural harbors of New England caused the growth of businesses that related to fishing, shipbuilding, and woodworking.
History and Free Enterprise The rich farmland of the Middle Colonies caused farmers to produce more wheat and flour.
History and Free Enterprise The large plantations and small farms of the Southern Colonies were conducive to the production of cotton, indigo, and tobacco crops.
History and Free Enterprise At the same time, the development of Spanish and French colonies in the New World also created demands for goods. Soon trading among the New World colonies became very important.
History and Free Enterprise As the world realized that profits could be made in the New World, many conflicts, battles, and wars were fought in order to gain control Eventually our country emerged free and independent of other countries.
What’s a Profit? Profit is the money a business has left after it has paid all its costs. Your goal at Enterprise City will be to pay off your bank loan and make a profit.
What are Costs? Businesses must spend money on certain things. Taxes Rent Advertising Supplies
Free Enterprise Leads to Invention “… I find out what the world needs, then I proceed to invent....” Thomas Edison, American Inventor
Free Enterprise Leads to Invention In 1868, Edison invented an Electrical Vote Recorder, but no one wanted to buy it. He decided that from then on, he’d only invent things that people would want to buy. Edison learned a hard lesson about supply and demand.
What’s Supply and Demand? Supply is how much of a product is available. Demand is the amount of a product that people are willing to buy. If LOTS of people want it, you can charge a higher price If NOT MANY people want it, you’ll need to lower the price.
Free Enterprise Leads to Invention Thomas Edison was paid $40,000 for his next invention. He used the money to build a laboratory and continue inventing. electric light bulb phonograph kinetoscope
Benefits of Free Enterprise: Choice You, the consumer, can choose from many different kinds of things to buy.
Benefits of Free Enterprise: Progress The free enterprise system inspires people to invent things. Remember Thomas Edison? His studio produced the first talking motion picture in 1912.
Benefits of Free Enterprise: Profit Entrepreneurs are people who start businesses in order to make money. Madame C. J. Walker started a beauty product line in She became the first African American woman to make a million dollars!
Good Advice “Don’t wait for opportunities to come. Get up and make them!” – Madame C. J. Walker
Good Luck! We hope you’ll make the most of your opportunities at Enterprise City!
Bibliography picture picture of Thomas Edison Picture of vote recorder Pictures of kinetoscope and phonograph Madame C.J. Walker