The resources used to produce goods and services are known as factors of production. These factors, which usually comprise land, labor, capital, and entrepreneurship are the pillars of every profitable business. Factors of production are necessary to create and complete a project that can be sold. How Factors of Production Work There are four factors of production; land, labor, capital, and entrepreneurship. Some theorize that there is a fifth factor that could be knowledge or capital finance. The focus below is on the commonly known factors of production. Land Any natural resources used to create goods or services falls into the land category. Land factors of production are usually renewable or non-renewable raw materials. Common examples of land include water, oil, natural gas, forests and copper. Land is an important factor of production because it can create economic value. That said, it isn’t necessary for profitable production in every sector. For instance, a social media platform may not need land resources to begin operations and grow into a successful business. An example of how land can be used in factors of production is when farmers