Factors of economic growth

In the economy of any enterprise, there is never any downtime. Moreover, it by its capabilities constantly influences the dynamic changes, while they can be both positive and negative. To always keep the situation under control, it is necessary to predict and adapt to all changes in the economic environment.

Economic growth is the main goal not only of the enterprise, but also of the state. The higher it will be, the greater will be the potential of the national economy, and accordingly, the standard of living of people. Economic growth has a positive impact on the development of the business sector, as it opens new opportunities for the development of market relations. The cost of resources, as well as solvent needs, depends on the state of the economy. The decline in economic development entails a decrease in the output of the enterprise and a decrease in the number of workers.

The state of economic growth depends on several factors. Factors are understood as processes and phenomena, on which depends how much the real volumes of production will increase. They also determine the opportunities for improving the quality and efficiency of growth. The factors of economic growth, depending on the degree of impact, are divided into basic and secondary. The main factors of economic growth determine the physical ability of economic recovery. Secondary factors contribute to the realization of this ability in reality.

The development of production can occur in an extensive or intensive way. The intensive economic growth is that the expansion is due to the qualitative renovation of production, in particular the transition to newer tools and objects of labor, as well as the introduction of modern, more efficient technologies. It should be noted that in its pure form this type of development of production does not exist. Most often, instead of intensive use such a term as "predominantly extensive".

Extensive growth is a slow increase in production, characterized by technical stagnation, limited resources and conservation of the structure of production. Extensive factors of economic growth have almost completely exhausted themselves, which makes it necessary to redirect forces to search for and implement those factors and reserves that will increase the efficiency and intensification of productive activities.

Factors of economic growth are quite diverse, but nevertheless, from them one can single out the most important and necessary for the successful development of production: the use of the possibilities of scientific and technical progress, the level of labor organization and production management, social conditions and guarantees, environmental conditions, external and internal economic relations. True, these factors do not always turn out to be effective. For example, in countries where natural conditions leave much to be desired, economic growth is quite high due to the use of modern scientific achievements. Some of the factories, having all the prerequisites for development, can not do this only because they do not have the support of others like themselves. Often, everything depends on the lack of seed capital, which, in fact, is one of the main engines of economic growth.

The factors of economic growth, despite the importance of their result, are in close interaction with each other. In principle, this is the successful development of production. Violation of such integrity leads to a slowdown in the collected rates and, as a result, a decline in the economy and a decrease in incomes. That is why it is important to monitor the entire production process, not forgetting to solve all problems in a timely manner.