The economic resources are the material or immaterial means that allow to satisfy certain needs within the productive process or the commercial activity of a company.
Economics Resources Definition
We may also said that Economic resources are those means material or immaterial offering to meet certain needs of the production process or the economic activity of a company. Consequently, economic resources are essential for economic, commercial or industrial operations.
To access an economic resource it is necessary that there is an investment of a certain amount of money previously. For an investment to be profitable through an activity has to be recovered with the use or exploitation of the activity itself. Let’s look at this general idea in a concrete example. A field is an economic resource that allows the development of agriculture, but this resource may be economically unavailable if the field is located in a geographical area that requires a large amount of money for its exploitation.
Economic resources enable individuals to meet their material needs and deal with their lives normally.
Importance of Economics Resources
These resources are necessary for the development of economic, commercial or industrial operations. Access to an economic resource involves an investment of money: the important thing for the company to be profitable is that the investment can be recovered with the use or exploitation of the resource.
For example:- A field is an economic resource that allows the development of agriculture. Such a resource may become economically unavailable if it is in the middle of the mountain or in a geographical area that requires too much money for its exploitation.
At the moment there is a lot of talk about this type of resources, specifically their scarcity. And is that due to the economics crisis is frequent to expose that many families in the world are now without the economic resources to survive.
This has made many people find themselves in the need of having to undertake, to start a business, with the clear objective of achieving economic stability that supports their environment. An action that is vital to take into account the following tips when starting with scarce economic resources: you must promote yourself in social networks that are free, you have to offer added value to the customer, you have to provide a Differentiating product from the competition.
The concept of economic resource is often referred to as a factor of production . The productive factors are the resources that are combined in the production process to add value in the elaboration of goods or services.
In the case of Spain, for example, it is established that the country’s economic resources are based on several pillars:
Primary sector. This area includes all the resources that are obtained in the field of agriculture, livestock and fishing.
Secondary sector. Under that name are all those economic resources that are achieved through the development of activities such as mining and industry. In the latter case, we would find various variants: agri-food, chemical, textile, metal …
Third sector. As service sector is also known that we can say that it is one that has to do with the wealth that is generated in areas such as tourism, trade or transport.
The Scottish economist Adam Smith ( 1723 – 1790 ) recognized three production factors involved in economic activity and that are rewarded in the market : the land (rewarded through income), the work (which consideration is the salary) and The capital (that benefits by the interest).
Current economic science includes other economic resources as productive factors, considering that these are indispensable elements within the complex current activity. The technology and science often appear, then, as a new production factor, like human capital or social capital.
Economic Resources and Entrepreneurship
At present, the phenomenon of entrepreneurship is global. Undertaking an activity in an area and with scarce economic resources requires an effective strategy , in which it is necessary to be promoted in social networks, to offer an added value to the client with respect to the competition and not to forget that the important thing is to keep satisfied the customers.
The entrepreneur with few economic resources should probably request money from a bank, for which he will have to offer a series of financial guarantees. However, there are other alternatives to get enough economic resources: crowding (collective financing of a project) or business angels (an investor who contributes capital for a new project, a start-up).
The entrepreneur with a shortage of economic resources has to maximize his creativity, propose achievable goals, plan his expenses properly and know in detail the financing mechanisms.
Production Factors
The term economic resource is often used as a synonym for factor of production and in this sense we can mention three factors of production that are part of economic activity: the land that is rewarded through income, the labor that is rewarded through A wage and the capital whose reward is the interest it produces. The idea of the factor of production has evolved and at present it is considered that there are other factors of production: science and technology, human capital or social capital.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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