There are several terms for the free enterprise system, but the most common is capitalism, referring to the ability of the system to generate capital (or money earned from selling goods).

Almost every nation in the world follows capitalism, allowing companies to determine the price of their goods and making it easy for customers to choose which company they most prefer. Some nations have almost no government checks on capitalism whatsoever, while others impose more taxes and regulations that affect both buyers and sellers. However, some economists believe that nations with heavy taxes and regulations do not follow the free enterprise system, and they use other terms, like 'social democracy', to describe them.

Other terms for the free enterprise system include laissez-faire, a French term that literally means 'allow to do', and free market.