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Businesses are not refining products and they are not adding any value on the sold products, but they are using the opportunity to purchase goods with lower price and then sell those products with a higher price, where the difference between those prices is profit. In addition, knowledge is an important factor, which explains the arrays of known profit opportunities, which entrepreneurs face, and those opportunities are not equally discoverable in all locations. The issue with classical and neoclassical models of land rent is a fact that they were based on an assumption where perfect knowledge of transportation requirements and transportation costs exist. Since all companies need to have space to produce and to operate, they own or rent land or real estate. Because of the rent, businesses are changing prices in the land market.

The spatial nature of entrepreneurship, economic prosperity and, the informal economy