Capitalism is an economic system in which the factors of production are privately owned.
Competition is based on free enterprise. Supply, demand, and prices, not politics, determine the answers to economic questions of how, what, and for whom to produce. The free competition fosters efficiency as companies compete for profits. The concepts of private property, negotiation, and cooperation were important developments in western Europe and contributed to the sustained Industrial Revolution, particularly in Britain. Capitalism does reward some but it also penalizes those who are not able to compete.