Free enterprise is usually described as a business where the supply, demand, and prices of the products being sold in the market were not controlled, dictated, and regulated by the government (Schwab, 2007). The price is decided through a mutual agreement of sellers and buyers without use of force or pressure. Through this, all business operations and dealings are morally voluntary (“Free Market”, 2007). As a free enterprise morally, it really suits to be considered as a free market or business because its actions and guidelines to operate are not restricted by large or powerful entity or people. Its freedom to operate its supply, demand, and prices are dictated by the needs of the buyers or customers (“Free Market”, 2007). There is also the building of trust, belief, and confidence of the customers to the seller and the manufacturer as well because free enterprise insists and maintains an honest persuasion, portrayal, and explanation of the product details. Thus, free enterprise is truly free morally and politically as it is free from force or fraud and government meddling and intrusion.
The problem in occurrence of free enterprises is the existence of black market and underground economy (“Free Market”, 2007). The illegal drug trades and smuggled goods and produce are extremely and amazingly robust and persistent that it can function smoothly without much government control. The government intervention can only enter if the society is affected much where human rights are violated and public health is at stake, but still, through support from immense and strong evidences. There are good free enterprises like fast foods and basic needs markets. As the supply and demand increases, the prices decreases, thus, more people are able to have what they do not have previously. For example, a million dollar personal computer unit before can be bought in $300 only at present. There is no control of new market entry in a free enterprise leading to occurrence of competition where profit is no longer monitored but the patronage of customers only. Thus, this market is truly “free”.
Free Market [Electronic Version]. Retrieved July 25, 2007 from http://en.wikipedia.org/wiki/Free_market.
Schwab, C. (2007). Free Enterprise [Electronic Version]. Retrieved July 25, 2007 from http://www.investorwords.com/2085/free_enterprise.html.