Economic Resources (Factors, Levels, Characteristics, Classification and Examples)

The Economic resources They are nothing more than each of the necessary inputs, and required by a company, to give fluidity to the production process of goods for consumption or, for the provision of a service.

From the theoretical point of view of economics, resources Economic factors are part of the productive factors that a company relies on to maintain itself and be sustainable over time.

On the other hand, they are also often described as the material resources or not, tangible or not, that manage to satisfy the productive and / or commercial needs of any company.

It is therefore evident the great importance of financial resources for any organizationWhether it is a producer of goods or a provider of services, since without them its future as a commercial entity would not only be limited, but would bring them to an end quickly.

The participation of economic resources in the activities of any company, are characterized by the use of elements such as human talent, finance and culture business.

Productive factors

When talking about the economic resource, it is usually accompanied by the term productive factor or as a synonym for the factors of production, since the combination of these with the activities dedicated to the provision of services or the production of goods, adds value to the entire process in the form integral.

Adam Smith recognized 3 productive factors that participated in economic activity, which were also rewarded:

• The factor of production Earth, made up of the soil, the waters, the minerals, the trees and the like. This factor is rewarded by the rent
• The factor of production Labor, made up of worker and factory labor. Is rewarded by salary
• The factor of production Capital, made up of managerial, administrative or specialized human talent, as well as material and financial resources. It is rewarded by Interest

Economists today also include science and technology as another factor of production, since they also consider them essential for productive activity.

In any case, it is established that the national resources of any country are supported on several bases, the most important are three:

• The Primary sector: natural resources, raw materials
• Secondary sector: processing sector of raw materials from the primary sector, mining, industry and the like
• The Third sector: services, commerce, tourism, transport

Levels of Economic Resources

In the language of economists, a resource is an input or input to start the production process, anything could be classified under this concept, since even waste can be reused as fertilizer material in certain industries.

Thus, it is normal to establish certain levels within economic resources to be able to identify them more precisely:

• The Infrastructure: corresponds to the physical place where the productive activity takes place, including the way of transporting it to its destination end, such as: railways, land, airways, buildings, factories, ports and Similar.
• Fixed Capital: is the capital invested in equipment, machinery and facilities directly related to the production of goods or the provision of the service.
• Working Capital: is the capital invested in inventory and inputs that are part of the normal operating cycle of the company, as well as activities related to sales.
• Capital Productivity: is the investment that the company allocates to acquire new and advanced technologies to use in improving processes and maximizing the performance of both teams and workers.

Economic Resources and their Characteristics

The economic resources are characterized by:

• Have a specific goal
• They are generally limited in quantity
• Easy access
• Can be transferred
• They have the ability to satisfy the requirements of a company, economically speaking
• Its combination with the productive factors accrues in the production of goods or in the provision of services

Economic Resource Classification

Traditionally, economic resources are usually classified as:

1.- Own Economic Resources

• Cash
• Properties contributed by partners
• Accumulated profits and reserves

2.- External Economic Resources

• Financing and loans granted by suppliers and creditors
• Credits
• Issuance of securities

Examples of Economic Resources

• Estate
• Social capital
• Sales revenue
• Movable property