Kaylee Riggie
Econ-Edgenuity
29 January 2023
Econ Essay
How did Henry Ford Utilize Free Enterprise in his Entrepreneurship?
Like many men of his time, Henry Ford was bustling with ideas in a world shifting into industrialization. However, with his innovative mind, and the help of the free enterprise system, Ford was able to revolutionize the manufacturing process in the automobile industry, and drastically change how workers were paid. This would greatly impact the market for both producers and consumers. Ford's fascination for the automobile industry first began when he worked as chief engineer for the Edison Illuminating Co. in Detroit. While working, he spent most of his time crafting models of gasoline engines and testing them in smaller crafts such as bicycles (“Henry Ford”). Eventually, Ford crafted his Model A car, however, he knew he needed it to be affordable for many Americans. The switch to a lower costing material, whilst upholding the reliability of the other models, proved to be one of Ford’s best moves.
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He began to get so many orders that he had no way of keeping up with the demand. The limited factors of production called for an innovative way of factory work. Instead of putting his cars together at one station, the worker's tasks were spaced out along a moving assembly line. This reduced the number of workers, and immensely reduced the time it took, leading to mass production (Eschner). By cutting hundreds of dollars off of the price of his car, he was able to utilize the aspects of free enterprise for producers; such as what to charge for their goods and services. Ultimately, deciding to make the Model T an exceptionally affordable car for Americans, Ford’s business model was one to reach the