The topic of economic science is vast. In fact, it is probably one of the most important topics in all of the sciences combined. Economics as a field of study has grown by leaps and bounds over recent decades. Particular areas of economic theory have grown in importance, and particular areas have seen growth in technological advances. The discipline has come of age with the arrival of the post-World War II global economic boom and continues to face the challenges of a rapidly changing world.
Economic positivism attempts to explain how the economy works and economic policies by appealing to the general public on the basis of individual self-interest. The distinguishing characteristic of economic positivism is that they are testable and either accepted or rejected as factual. This allows an individual to construct economic theories on their own, which may then be examined by other individuals and subjected to peer review.
An alternative description of the economics profession is the entrepreneur. The entrepreneur is the person who executes the plans and makes the decisions for the business. The typical entrepreneur is the business owner who have hired employees, bought raw materials and developed products, and invested in marketing strategies. A good description of the entrepreneurial profession would include a list of self-employed people and business owners.
Another alternative description of the business world is the producer. The producer is the person who manufactures or builds the items for sale to customers and investors. The typical producer can be the owner of a manufacturing plant or someone who produces items for sale in retail stores. The key characteristic of the producer class is that economic resource production is the driving force behind their business reputation and market share.
The third classification of business owners is the sales or marketing professional. The typical sales or marketing professionals are accountants, entrepreneurs, and financial planners. Their job is to interpret the information, gain market share, and create a profit. The key characteristics of these professionals include the ability to make sound business decisions, a high level of technical competency, and the ability to apply economic theory and statistics to their own needs and circumstances.
The fourth class of business owners is called the information age. These are business owners who create, process, store, and communicate information. This information is usually about the products, service, and trends that affect their business. Information age business owners typically need to know how to interpret and apply economic theory and statistics. These people are also highly educated. In fact, many of them graduated from business schools or received higher education at some time.
A fifth class of business owners is called the service owner. This is the individual who provides a service to a customer. Most often, this individual creates the service and delivers it in exchange for a payment. The typical service owner needs to understand the elements of the service (goods, service, price, and time) as well as how to analyze the income statement to determine whether revenues are derived from services. This analysis requires the person to have good mathematical skills as well as an ability to communicate effectively and sell a product or service that creates a profit.
The final category is called the non-owner’s category. This category includes managers, brokers, business partners, and owners of franchises. Typically, the members of this category possess skills that are not required to run the day-to-day operations of the company they are managing. However, the most common characteristic of this group is the fact that they possess the necessary managerial and economic skills to be effective owners. The most important resources used by members of this category include money, time, knowledge, and capabilities.