Businesses are established to fulfill the needs and wants of their community. The term "factors of production" pertains to the inputs used in producing goods and services for economic gain. These factors are categorized into four groups: capital, natural resources, labor, and entrepreneurship (Fernando, J. 2022. 4 Factors Of Production Explained With Examples, para. 1).

1. Capital

Capital in business mainly refers to assets or money. It is not actually a production factor, but it helps entrepreneurs purchase land, capital goods, and pay wages. With Zoey contributing R2 000 000 in cash, and Ameera providing beauty equipment, their business will benefit. Future sustainable development will also be possible with significant capital contributions (Roos, B. 2022. Zoey and Ameera. Para. 5).

2. Natural Resources

Natural resources are produced by nature or extracted from the earth. These resources are divided into renewable (can be replenished) and non-renewable (limited supply). However, in a beauty salon business, natural resources do not play a significant role because the products are already processed.

3. Labor

Human effort plays a crucial role in ensuring that goods or services are consistently produced. This production factor is considered essential since the quality of the product or service depends on the effort exerted by the labor force. In a beauty salon, perfection in delivering services to each client is vital for the business to gain a good reputation and boost financial returns.

4. Entrepreneurship

Entrepreneurship refers to a person who invests in and bears the risks associated with a new business. This production factor is the most important because entrepreneurs combine other production factors to provide goods or services efficiently. In the scenario provided, Zoey embodies good entrepreneurial qualities by identifying a gap in the market and filling it herself. Business success is more likely when entrepreneurs embrace the factor of entrepreneurship.

Business Sectors

1. Primary Sector

This sector is responsible for extracting raw materials from the earth that can be developed into products with monetary value. Examples of businesses in this sector are mines, farms, and fisheries. Although a beauty salon business is not part of this sector, it still benefits from the availability of natural products used in the salon.

2. Secondary Sector

The industrial sector, also known as the secondary sector, is responsible for the transformation of extracted materials into finished goods that can be sold in the market. Quality goods must be produced to increase profitability. Businesses in this sector include factories, construction companies, and automobile manufacturers.

Zoey and Ameera may not be directly involved in the secondary sector, but they definitely reap the benefits. Majority, if not all, of the products they utilize in their salon are sourced from this sector. From hair gels to hair dryers, their salon is a result of the hard work of the secondary sector.

The tertiary sector, also known as the service sector, is crucial to both the primary and secondary sectors. It is responsible for distributing the goods created by these sectors to the end consumers, as well as providing various services using these goods. This sector encompasses a vast array of businesses, ranging from transportation to grocery stores. It acts as the bridge between consumers and the industries.

Operating in the tertiary sector, Zoey and Ameera's beauty salon delivers a wide range of services to their customers in exchange for payment. Their ability to offer such services is due to the work done in the primary and secondary sectors.