Understand economic objectives

The definition of economic motive is anything that relates to, or is related to, the causes, motivations, or motivations of an individual or organization, and activities or activities to perform economic activities.

The definition of economic motive can also be considered as the main cause of economic activity or activity performed by an individual or organization. In general, people undertake economic activities or activities aimed at meeting their daily needs, from primary, secondary to tertiary needs.

The word “motive” itself comes from English meaning “motive” which means reason or motivation to do something to someone. So that this economic objective is understood by every step, step, or action that is motivated to achieve a goal.

Economic motive objective

Mentioning the above explanation, the purpose of this economic objective is to fulfill the needs of human life. In general, there are three human requirements:

  1. Basic needs are basic human needs such as food and drink, clothing and shelter.
  2. There is an additional need to support the primary needs of human beings such as vehicles, television, magazines, books and so on.
  3. Tertiary requirements are human needs that are iconic or that can enhance a person, such as musical instruments, luxury homes, sports equipment, and others.

Types of economic objectives

On the basis of causation factors, this economic motive can be divided into 2 (two) types, namely:

1. Self-purpose

The definition of an internal motive is an economic motive that appears in an individual without the influence of external factors. For example, when someone feels thirsty and hungry, they buy food and drink.

2. External Objectives

Definition of external motive is an economic motive that appears in a person due to the influence of external factors. For example, A indicates a new laptop that he bought from B, then a desire to buy a new laptop from B.

Difference in economic objectives of individuals and organizations

In addition, economic objectives can also be varied based on economic actors, namely based on individual and organizational objectives.

1. Personal Motive

This personal motive is based on an internal campaign to improve the economy and the welfare of himself and his family. Some of these personal objectives include the following:

  • Motivates to improve living standards
    By nature, all human beings always try to meet their daily needs both physically and mentally. In this way he improves his standard of living, that is, a state of balance between needs and satisfaction.
  • Motive to renew oneself
    In general, people need recognition and appreciation from others. It is a reason for someone to engage in economic activities or activities, viz. B. Buy a personal vehicle, buy nice clothes, etc.
  • Motive for achieving economic strength
    Most of these businessmen want economic strength in the industry in which they live. It is not uncommon for an entrepreneur to do various things and make his company a market leader in order to generate more profit.
  • Social cause
    There are also some people who carry out economic activities or activities because they are based on social objectives. This is due to the desire to help others and achieve success. For example, the establishment of a cooperative for the benefit of its members.

2. Organizational Motive

The motive of an organization or company is an economic objective that is based on the will of a group to enable the economy of the group members to work together. Some of the objectives of this organization are:

  • Purpose of production
    A company strives to produce good or quality goods or services at low prices. It aims to develop a niche market share in a sustainable manner.
  • Profit oriented objective
    Profit earning is the main reason for companies taking economic action. With these advantages, an organization or company can carry out its economic activities or activities permanently.
  • Motivates to maintain business continuity
    Although many people have built businesses, not all of them can survive. This is the reason why all companies can always try to earn profits in a sustainable manner so that the activities or activities of the company can continue.

It is an explanation for understanding economic objectives, differences, types and goals. Hopefully, what has been said above can be useful for you. Thanks a lot.