Private Enterprise
Definition
A business or industry that is managed by individuals or companies, rather than the state. It operates with the main goal of making profits.
Analogy
Private enterprise is like a lemonade stand run by kids in your neighborhood. They decide what to sell, how much to charge, and they keep any profits they make.
Related terms
Capitalism: An economic system where trade and industry are controlled by private owners for profit, rather than by the state.
Free Market: A type of economy where prices for goods and services are determined by open competition in a free market.
Entrepreneurship: The activity of setting up a business or businesses, taking on financial risks in the hope of profit.
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