The 5 main characteristics of capitalism are: Free Enterprise - All business enterprises are free to compete with each other for higher profits. Property Rights - Private businesses enjoy property and land ownership rights and need not depend on the government for the same. Minimal Government Involvement - It is non-interference by the government authorities and organizations in trade and business activities. Profit Motive - Business enterprises function with profit-making as their primary motive. Technological Advancement - Technological advancement is one of the major characteristics of capitalism as it promotes the concept of employing advanced production techniques. This has led to the practice of using improved machinery and automated systems for developing superlative products which in turn can bring more profit and revenue for the business.