There is never any downtime in the economy of any enterprise. Moreover, because of its capabilities, it constantly affects dynamic changes, while they can be both positive and negative. To always keep the situation under control, it is necessary to forecast and adapt to all changes in the economic environment.
Economic growth is the main goal of not only the enterprise, but also the state. The higher it is, 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 up 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 volume of products manufactured by 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 real production volumes increase. They also determine the possibility of improving the quality and efficiency of growth. Factors of economic growth, depending on the degree of impact, are divided into main and secondary. The main factors of economic growth determine the physical ability of economic recovery. Secondary factors contribute to translating this ability into reality.
Production development can occur in an extensive or intensive way. Intensive economic growth lies in the fact that the increase is due to a qualitative renewal 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, they use such a concept as “predominantly extensive”.
Extensive growth is a slow increase in production, characterized by technical stagnation, limited resources and the preservation of the structure of production. Extensive factors of economic growth have almost completely exhausted themselves, due to which there is a need to redirect forces to search and implement those factors and reserves that will increase the efficiency and intensification of production activities.
The factors of economic growth are quite diverse, but nevertheless, the most important and necessary for the successful development of production can be distinguished: using the possibilities of scientific and technological progress, the level of organization of labor and production management, social conditions and guarantees, natural conditions, external and internal economic relations. True, these factors are not always 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 production facilities, having all the prerequisites for development, cannot do this only because they do not have the support of others like themselves. Often, everything comes down to a lack of seed capital, which, in fact, is one of the main engines of economic growth.
Economic growth factors, despite the importance of their outcome, are in close interaction with each other. In principle, this is the successful development of production. Violation of such integrity leads to inhibition of the momentum and, as a consequence, to a slowdown in the economy and lower incomes. That is why it is important to monitor the entire production process, not forgetting to solve all problems in a timely manner.