Why is money not considered to be a capital resource in economics? Why is entrepreneurial ability considered a category of the economic resource, distinct from labor? What roles do entrepreneurs play in the economy?

Economists consider capital resources the goods that aid in producing a particular commodity or service. On the other hand, money cannot produce anything if used as input for the production process.

Money is only used as a medium of exchange. As it cannot be utilized in the production of goods and services, it is not considered the capital economic resource.

Labor economic resource pertains to the humans' physical and mental contributions in the production process of goods and services. Entrepreneurial ability is different from labor economic resource.

The entrepreneurial ability involves the risk-taking perspective, provision of innovative ideas, initiating the production, and strategy building. Therefore, it is a much wider concept and is not placed under the labor economic resource category.

The roles of entrepreneurs are as follows.

• Taking initiatives: Entrepreneurs are the ones who take the initiative to produce a good or provide a service for society.
• Risk bearers: Entrepreneurs invest in different factors of production. The risk associated with the production process is the major component that the entrepreneurs have to figure as the failure of the project will certainly lead to losses.
• Innovative ideas: An entrepreneur is responsible for coming up with innovative ideas that help in creating new values for the commodities.
• Strategy builders: Entrepreneurs build strategies to carry out the production process efficiently.