Free Enterprise system places very less significance of the governmental interference in trade and business. Restrictions placed by the government are minimum. It is also referred as the free market. In this type of system, free competition exists between various business ventures. United States of America practices free enterprise system.
Consumer’s preferences are taken to be very important. As a business owner, he has all the power to fix the market price and determine his own profit level. He can also choose his set of suppliers along with whom he enters into this type of business.
