Free Enterprise Definition
Free Enterprise is am economic system characterized by private or corporate ownership of capital goods; investments that are determined by private decision rather than by state control; and determined in a free market.
Also known as laissez-faire, capitalism, or free market, a free enterprise economic system is characterized by complete freedom in the flow of goods and services. Prices are determined by supply and demand under the conditions of perfect competition. The consumer is the determining factor in this relationship.
In a free enterprise economy, the means of production (e.g., a producing factory) is usually owned by individuals or small groups of individuals who earn a profit. All goods and services provided within this system have a price, and it is through variations in the supply of and demand for these goods and services that production and prices fluctuate.