chapter  7
27 Pages

The Basic Problem of an Entrepreneurial System: Unemployment

The difference between business and government enterprises is that the former are owned by individual investors rather than the community at large.1 Business managers respond to opportunities for profit to employ workers and create income in the private sector. Managers of government enterprises (for example, the Tennessee Valley Authority, public schools systems, the London Underground, etc.) are civil servants who provide employment and generate income in response to the legislative mandates given to them.