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The concept of the structure of the economy

Structure <TAG1> the relationship between the elements of which the object of study is composed (E. Alaev)
Farm structure <TAG1> is the composition and ratio of its main components — spheres, sectors, divisions, industries, types of production, types of economic activity in general (O. Topchiev)

The primary element of the economic system

Elements of the economic system of the region are enterprises.
Enterprise (under the current Economic Code) — an independent economic entity established by a competent public authority or local government authority, or other entities, to meet public and personal needs through the systematic implementation of production, research, trade, other economic activities.
Enterprises can be created both for entrepreneurship and for non-commercial economic activity.

Functions of enterprises

Economic:

  • Mobilization function it consists in the fact that the enterprise mobilizes capital, labor and other resources for their production use, buys raw materials, materials, semi-finished products, rents land, premises, hires labor.
  • Organizational function. It consists in the fact that the entrepreneur assumes the function of organizing the production and sale of goods, market research.
  • Creative (innovative) function it consists in the fact that the entrepreneur always strives to improve the organization and technology of production, to implement the latest achievements of economic and technical progress.

Social:

  • Motivational — creation of incentives for more efficient and productive work, improvement of working conditions, formation of a favorable psychological climate.
  • Educational <TAG1> promoting the improvement of the level of education and qualifications of employees
  • Social protection and charitable assistance <TAG1> community support, health and recreation for employees and family members
  • Ecological function enterprise consists in forming a positive image of the enterprise's relationship in the system «production — environment».
Provides for a systematic action to reduce the negative impact of the enterprise on the environment

Grouping of enterprises (signs)

1. By form of ownership
  • Private
  • State
  • Communal
  • Family, etc.
2. By size
  • Big
  • Average
  • Mali
  • Microenterprises
3. By functional and sectoral type of activity
  • Industrial
  • Agricultural
  • Transport
  • Construction, etc.

Merger of enterprises (forms)

Association <TAG1> voluntary association of natural or legal persons to achieve a common objective while preserving the independence, legal and property independence of its members.
Corporation <TAG1> is created from a combination of the industrial, scientific and commercial interests of the merged enterprises. In this case, enterprises delegate separate powers of centralized regulation of the activities of each of the participants to the management bodies of the corporation.
Consortium <TAG1> temporary statutory association of undertakings to achieve by its members a certain common economic objective. If the goal is achieved, the consortium ceases its activities.
Concern <TAG1> is a statutory association of undertakings. The members of the concern grant it part of their powers, including the right to represent their interests in relations with authorities, other enterprises and organizations. Concern members cannot be simultaneously members of another concern.
Commercial Code (art. 120)

Peculiarities of the structure of the economy

Dynamism — ability to change (transform) under the influence of various factors
Hierarchicality, branching, complexity
Modernity — compliance with modern requirements of technology, labor organization (eg, outdated, archaic, modern structure)
Efficiency — ability to give economic return

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