Economic activity of the enterprise: description, essence, goals and objectives

The development and establishment of financial market relations contributed to the emergence of various forms of financial and economic activity. The main advantages of small and medium-sized businesses are efficiency, the ability to quickly adapt to new market conditions. Large enterprises and companies have their advantages: stability and the ability to develop in a different direction, while covering new areas of the market. They are united by the most attractive economic activity for all - trade.

In Russia, interest in entrepreneurial activity has clearly increased recently. What awaits a person who has come to embody his ideas in business? According to statistics, only 5% of Russian entrepreneurs who initially had a fruitful idea got a chance to grow and get on their feet. At the same time, 33-45% of prosperity seekers will not even return the money they spent on the initial registration of the enterprise. The remaining 55-60% are struggling for survival. And it is not known whether luck will be considered the fact that they were not immediately absorbed in the turbulent elements of the market. Let us reveal a secret: a properly constructed organization of economic activity gives a chance for the successful development of the enterprise and the achievement of the desired result.

Description and structure of economic activity

First, let's figure out what economic activity is. This is a set of certain actions in various areas of management aimed at meeting needs through exchange or production of goods. Financial and economic activity actively develops when it sets a goal, has an effect in the form of production or exchange of goods, services that are recognized as useful or rare. Such activity consists of production, distribution and consumption.

These concepts are inextricably linked with people and their needs. The result of production is the appearance of products intended for personal and industrial consumption. This may be investment goods that are returned to production for their further use, or consumer goods - clothing, services, food, housing.

Economic activity has three areas:

1. Primary production. This includes agriculture or forestry, fishing, hunting, mining or energy production.
2. Secondary production or further processing of resources.
3. Tertiary production (services) - transport companies, credit organizations, educational and scientific enterprises, hotels, restaurants.

Activities

The following types of entrepreneurial (economic) activities:

• production;
• financial credit;
• a commercial;
• intermediary.

Each of them has inherent risks that are generated by environmental factors:

1. Socio-economic. This is the fluctuation of interest rates and prices, lack of investment.
2. Political and legal. This includes the instability of the legislative framework.
3. Technological - obsolescence of fixed assets, lack of scientific and technological developments.

The essence of economic activity

In order to answer the question, what is the essence of this or that enterprise, it is necessary to determine what goal the owners or founders set by creating it. If the goal is to make a profit, such an economic activity of the enterprise is commercial.Organizations that do not pursue the goal of making a profit or distributing it among themselves are non-profit.

To determine the essence of economic activity, it is also important to share the responsibility of the owner for obligations. There are:

• Limited liability companies - the owner is liable for the obligations of the enterprise only with the part invested in the authorized capital.
• Enterprises with unlimited liability - the owner is liable for the debts of the enterprise with all personal property.

Company target setting

An entrepreneur creates an enterprise that occupies a specific sector of a market economy. Such a company is an independent business unit of a certain form of ownership, which combines economic resources in order to carry out commercial activities - the production of goods, the provision of services to third parties. This should be financially profitable - profit, which is the goal spheres of economic activity.

Before the stage of creating an enterprise, goals should already be formulated, methods and stages of their achievement should be determined. There are general and specific goals. The general ones include: optimal profitability and ensuring a stable position of the enterprise in the market. Specific goals are: the profitability of each of the company’s divisions, a phased increase in sales, the introduction of new products and the optimization of a domestic product to foreign requirements for entering the foreign market and so on.

Income generation is the main goal of economic activity

The main goal for any enterprise is to extract the maximum possible profit.

For this, it exists: it is engaged in the production or sale of products, minimizes costs. It is a mistake to believe that the cash equivalent received from the sale of goods or any goods is a profit. This is gross income, total revenue. Profit is the difference between total revenue and production costs or costs.

Stages of profit formation

Firstly, it is formed when determining the new value. In other words, money is invested in the work, some kind of product is created, on which the two leading factors of production — capital and labor — have been expended. There is a new value of the created goods - added. Secondly, profit is also formed during the sale of goods or goods. Without reaching this stage, the profit will be potential, the income is possible, since it has not yet been realized, since the goods have not been sold and money has not been received for them.

Tasks to achieve an effective result

To achieve the goals, it is necessary to analyze the economic activities of similar business entities and determine the following tasks:

• goods or services to be produced or rendered;
• volume of manufactured goods (provided works, services);
• technology used in production;
• resources to be acquired, their volume;
• a way to promote your products on the market.

In addition, the businessman must know how to effectively organize the work and the production process, how much to pay for the work of workers and personnel, so that productivity is optimal, at what price to offer goods for sale.

Of course, this list is incomplete and can be expanded taking into account the specifics of production or the activities of the enterprise.

The indicator characterizing the success of the enterprise

To determine success, it is necessary to analyze two basic interrelated concepts:

• Economic effect - a useful result, which is expressed in terms of value. As a rule, categories such as profit and saving resources and costs are considered to be useful results.
• Economic efficiency - the ratio between the result of economic activity and the cost of labor and resources.This is a relative indicator, determined by comparing the effect with resources and costs.

Separately, they do not give a complete and objective assessment of the enterprise.

For the development of the company in conditions of fierce competition, the leader must understand that each economic activity has individual indicators, which are often not used anywhere else. For example, in the sugar industry, reducing production costs by using recyclables or by using the most advanced degree of processing is of great importance. There is no universal economic indicator efficiency, which would cover all areas of activity.