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Concept of Economic Structure
Structure β the relationship between the elements that make up the object of study (E. Alayev)
Structure of the Economy β the composition and relationship of its main components β spheres, sectors, divisions, industries, types of production, types of economic activity in general (O. Topchiyev)
Primary Element of the Economic System
The elements of the economic system of the region are enterprises.
Enterprise (according to the current Economic Code) β an independent entity of economic activity, created by a competent authority of state power or a local self-government body, or other entities to meet public and personal needs through the systematic implementation of production, research, trade, and other economic activities.
Enterprises can be created for both entrepreneurial and non-commercial economic activities.
Functions of Enterprises
Economic:
- Mobilization Function consists of the enterprise mobilizing capital, labor, and other resources for their productive use, purchasing raw materials, materials, semi-finished products, renting land, premises, and hiring labor.
- Organizational Function. Consists of the entrepreneur taking on the function of organizing production and sales of goods, and market research.
- Creative (Innovative) Function consists of the entrepreneur always striving to improve the organization and technology of production, implementing the latest achievements of economic and technical progress.
Social:
- Motivational β creating incentives for more effective and productive work, improving working conditions, forming a favorable psychological climate.
- Educational β promoting the increase of education and qualification levels of employees
- Social Protection and Charitable Assistance β supporting the community, health improvement, and recreation for employees and their family members
- Environmental Function of the enterprise consists of forming a positive image regarding the enterprise's relations in the "production β environment" system.
It involves systematic actions to reduce the negative impact of the enterprise on the environment
Grouping of Enterprises (Signs)
1. By Ownership Type
- Private
- State
- Municipal
- Family and others
2. By Size
- Large
- Medium
- Small
- Micro-enterprises
3. By Functional-Branch Type of Activity
- Industrial
- Agricultural
- Transport
- Construction and others
Associations of Enterprises (Forms)
Association β a voluntary union of individuals or legal entities to achieve a common goal while maintaining the independence, legal, and property autonomy of its members.
Corporation β created based on the combination of production, scientific, and commercial interests of the united enterprises. In this case, enterprises delegate certain powers of centralized regulation of the activities of each participant to the management bodies of the corporation.
Consortium β a temporary statutory association of enterprises to achieve a certain common economic goal by its participants. Upon achieving the goal, the consortium ceases its activities.
Concern β a statutory association of enterprises. Participants of the concern endow it with part of their powers, including the right to represent their interests in relations with government bodies, other enterprises, and organizations. Participants of the concern cannot simultaneously be participants of another concern.
Economic Code (Art. 120)
Features of the Structure of the Economy
Dynamic β the ability to change (transform) under the influence of various factors
Hierarchical, Branching, Complexity
Modernity β compliance with modern technical and labor organization requirements (e.g., outdated, archaic, modern structure)
Effectiveness β the ability to provide economic returns
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