What is the meaning of factors of production?

Factors of production are the basic building blocks an economy uses to produce goods and services. Think of them as the essential ingredients for any business. There are four main types. Land includes natural resources, like oil or timber. Labour is the human effort people contribute. Capital refers to the tools, machinery, and buildings. And finally, entrepreneurship is the person with the idea who combines the other three factors to create a product. Pretty much everything we use is made from them.