The three factors—land, labour, and capital—lie scattered. One person has land but no capital; another has capital but no land. The labour has neither; he has only his labour to offer. So all the factors of production lie apart from one another. Somebody must bring them together if production is to go on. This is what the entrepreneur does.

Hence organisation is a very important factor of production. Unless business properly organised, it cannot be a success. Only through a proper organisation of business will the other factors of production make their best contribution in the work of production. Otherwise labour may be misdirected or land and capital wasted. Land may be very fertile and labour may be very efficient. But if the organiser is inefficient or incapable, the productivity of land and the efficiency of labour will be of no avail.