Bill Gates is an American businessman and one of the founders of Microsoft, a successful computer technology company. The free enterprise system enabled Gates to create this successful and influential company, and become of the richest people in the world.
In the 1960’s, Gates and his friend, Paul Allen, learnedhow to use computer programming languages. They even began to create their own programs. Gates was studying at Harvard, but decided to drop out to pursue a company with Allen. They founded Microsoft in the 1970’s. They made computer programming systems and then sold them to other companies. Before Gates was 40 years old, he became the richest man in the world. Today, he has an estimated 58 million dollars.Gates did not create new computer desktop technology. Instead, he changed and improved existing computer technology to fit a specific consumer market. He continued to adapt and improve his technology to reach wider markets around the world.
The free enterprise system was very important to Gates’ success. Without the free enterprise system, Gates would not have been given much economic choice as a producer. Under the free enterprise system, Gates could decide what goods to produce, how much to charge for those goods and what to do with any profit he makes. Gates and his partner saw a hole in the market, therefore they chose to adapt different computer programs to fit a new, specific need. Then, they sold these programs to different companies to be used. They were able to decide how much they wanted to sell their program for, therefore they could make prices as high or as low as they wanted. Microsoft became a very successful company with a large profit. Gates has a large personal fortune, which he is entitled to keep. However, Gates decided to donate large amounts of his money to different charities. In order for Gates to earn so much money, he had to be working in a free enterprise system. Other systems do not allow for one person or company to accumulate this much money.
The free enterprise system also allows for competition and supply and demand of the consumer to determine a businesses’ success. Competition creates lower prices, lower risk and new or improved products. To make Microsoft competitive in its market, Gates relied on innovation. He worked on many different aspects of computer technology to improve current computer programs and change them to fit specific needs. Gates was providing consumers with products for more specialized functions, which made customers want to purchase from his company, making it competitive. Without the help of the free enterprise system, Microsoft would not have been able to use competition which was a key factor that contributed to its success.
Without the help of the free enterprise system, Gates would not have accumulated the wealth that he has, and would not be able to have as successful and influential company as he does. The economic choice provided to producers by the free enterprise system allows for a greater level of freedom, to create bigger and more successful businesses.