A private enterprise system is an economic system in which all the resources or resources needed for production are owned by the business person. Private enterprise is basically based on four principles or rights.
Right to private property or personal property: Everyone in the private enterprise system has the right to sell the property whenever he / she feels good, to buy new property or use it for personal use or to own it if he / she feels good. An individual may exercise his or her right over a property, such as land, building or building, various equipment or invisible property, or an invention, using his or her own merit.
Right to freedom in choosing things: Private enterprise system gives a person full freedom to choose his personal preferences. In such a system, a person has full freedom to know what he will do or where he will work or how and where to use his money. It implies that a person has the freedom to change his or her economic situation in society or to change jobs when they are happy.
Right to profit: In the private enterprise system, the person who takes the opportunity to start a business by investing in the business has the full right to enjoy the profit. This fact of profitability is what really attracts people to start a business.
Right to compete: Under the private enterprise system, people have the right to compete with others. Along with profitability, rivalry is also one of the cornerstones of the private enterprise system. Think about how companies can compete? By producing superior quality products from competing company products, selling products to consumers at a better price (lower price) than competitor or competitor’s products, making it available to consumers through good advertising or wherever consumers want the product.
