Free enterprise is a type of economy where products, prices, and services are determined by the market, not the government. It’s capitalism, not communism.
Things that are free are unconstrained, and a business is an enterprise. So, free enterprise refers to an economy where businesses are free from government control. In a free enterprise, prices go up and down because of supply and demand. If there's high demand, prices go up. If there's low demand, prices go down. Free enterprise is when private companies compete for profit without government interference.