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Economics of location and reasons for locating enterprises

The success of the enterprise is affected not only by the state of competition in the industry market, but also by the location of the company, its size and volume of production.

When choosing the location of the enterprise, the balance of interests of the enterprise (industry) and the territory on which the placement is planned is taken into account. Hereinafter, by the territory of location we mean the subject of the Russian Federation, or a municipality. The interests of the enterprise reflect the factors of its survival in the given territory. Interests

territories reflect factors of attractiveness of an industry or enterprise for a city (region).

The determining principle of the location of the enterprise, ensuring its survival in a given territory, is the principle of minimizing the total costs of production and sale of products (production and marketing costs).

When analyzing the potential effectiveness of placing an enterprise in a given territory, it is necessary to evaluate the effect of the following

survival factors:

1. The nature of the products - for industrial or personal consumption, the possibility and timing of storage and transportation, its energy, labor, and resource intensity.

2. The nature of production processes - environmental friendliness, the need for special technologies, raw materials, energy sources.

3. The nature of consumption is mass or single sales, the presence of one large consumer or an extensive chain of small ones.

4. The ability to provide the created enterprise with labor - the availability of the required number of skilled workers, the cost of labor, the provision of social and living conditions.

5. The availability of transport communications - the type of transport required, its carrying capacity, tariffs for transportation, etc.

6. Proximity to the market and geographical boundaries of the industry market.

7. Availability and possibility of obtaining benefits and preferences - tax-free (offshore zones, soft loans, the possibility of renting premises and equipment on soft terms).

Prospects for the development of the region or municipality.

In more detail, the factors of the location of production, taken into account when assessing the survival rate of an enterprise in a given territory, are reflected in Scheme 4.

On the other hand, it is necessary to assess the attractiveness of the industry and enterprise for the city (region).

Assessment of attractiveness is based on identifying the impact that a given enterprise (industry) has or will have on the indicators of socio-economic development of a city (region). Since the influence can be the most diverse and contradictory, the assessment is conducted on separate components. For this, the concept of attractiveness factor is introduced. Assessment of the attractiveness of an enterprise (industry) for a city (region) can be carried out taking into account the following factors:

1) promotion of general employment,

2) promoting the employment of target groups,

3) promoting the growth of living standards,

4) promoting revenue growth and reducing budget expenditures,

5) promoting the growth of related industries,

6) promoting the sustainability and structural diversification of the local economy,

7) environmental impact,

8) assistance in the formation of the chosen image and promising specialization,

9) promoting overall economic growth.

For each factor, an indicator is selected, calculated on the basis of the available statistical data (Table 6).

Table 6 -

indicators for the attractiveness factors of an enterprise (industry) for a city (region)

Based on a comparison of the attractiveness of placing an enterprise (industry) for a given region or municipality with an assessment of the survival rate of an enterprise, it is concluded that it is advisable to place this enterprise in a given territory. With this approach, a balance of interests of the enterprise and the territory is achieved.
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Economics of location and reasons for locating enterprises

  1. Economics of enterprise location. The size of the enterprise and the factors that determine it
    Economics of enterprise location. The size of the enterprise and its factors
  2. Features of placement and effective sizes of healthcare enterprises
    When analyzing the potential effectiveness of deploying a health care enterprise in any territory and assessing the effects of survival factors, a number of industry-specific features arise (Table 7): Table 7 — factors for the location of health care enterprises according to the survival criterion {foto14} * Mass consumption of medical services involves seeking medical help any
  3. Sanitary and hygienic provision of enterprises
    The following bodies are subject to mandatory agreement with the bodies implementing state sanitary supervision: land allotment to legal entities and individuals, planning projects, location schemes for territorial production and agricultural complexes, territorial location schemes, master plans for cities, towns, rural and other settlements, resorts, projects detailed
  4. Hygienic requirements for the organization of residential territory and the location of enterprises serving the population
    Planning the residential territory of populated areas should ensure a rational and interconnected location of residential buildings, public institutions and public service enterprises, jobs, street networks and green spaces, as well as the most favorable living conditions for the population, taking into account the normative provision of social, cultural and domestic institutions
  5. Hygienic requirements for the location and layout of the production area. Sanitary classification of industrial enterprises and the organization of SPZ
    The structure of the industrial and production zone, as a functionally specialized part of the city, includes objects of material production, utilities, industrial infrastructure, science and scientific services, personnel training, and other objects of the non-production sphere that serve material and intangible production. Production area should
  6. Sanitary requirements for placement, layout and interior decoration
    The construction and equipment of public catering facilities is carried out in accordance with the "Building Norms and Rules" (SNiP 11 - L.8-71). In accordance with the estimated standards for the development of public catering, for every thousand residents of settlements in an open network there should be from 32 to 52 seats; for every thousand people working in the most numerous shift
  7. Placement of child and adolescent institutions in settlements
    When deciding on the issues of preventive sanitary supervision when placing children’s and teenage institutions, it is necessary to proceed from the following general requirements: 1) in a group of residential buildings within a service radius of up to 0.3 km — kindergartens; 2) in the microdistrict within a service radius of up to 0.5 km - schools; 3) in the village - houses of pioneers, children's parks, children's sports schools and other sports
  8. Sanitary and epidemiological requirements for the location, territory and master plan of the site
    Placement of EPP and the provision of land is allowed in the presence of a sanitary-epidemiological conclusion on their compliance with sanitary rules and norms. POP can be located both as a separate building, and annexed, built-in attached to residential and public buildings in non-residential floors of residential buildings, in public buildings, as well as in industrial and other
  9. Sanitary requirements for the location of stores
    According to the current building codes, shops can be designed in separate buildings, in a shopping center complex, built into residential buildings or public buildings, built-in attached to these buildings. The warehouse network, especially large objects, must be located in separate buildings. The objects of the distribution network must have a land plot, to
  10. Placement and equipment of the dressing FAP
    The feldsher half of the FAP consists of the expected - 15 m2, the feldsher's office - 14 m2 and the treatment room - 18 m2. Storage rooms for cleaning items, dirty and clean linen - 2 m2 each. If there are maternity beds or an insulator, a sterilization room of 10 m2 is provided. On FAP should be allocated a separate room for purulent operations and dressings. It has a special
  11. Hygienic requirements for the choice of territory for the placement of populated areas. The value of climatic conditions and environmental conditions
    The choice of territory for the construction, expansion or reconstruction of urban and rural settlements is one of the crucial stages of preventive sanitary supervision. It should be noted that further living conditions and public health depend on the correctness of the solution to this issue. Therefore, for the placement, design and construction of settlements, their individual parts or objects
  12. Hygienic principles of placement of schools. School service radius. Hygienic requirements for the land and school building
    When placing a school in an NP, the following principles are taken into account: * Proximity to the place of residence; * Remoteness from highways, industrial enterprises and crowded places. * Sufficiently sized plot of land that meets sanitary requirements. Area is calculated by the number of students. The smallest area for up to 320 students is 1-2 ha, 1960 - 5 ha. At the same time, the sports area is allocated
    Processing of veterinary confiscations, non-food waste and technical raw materials of animal origin is carried out in the feed and technical products shops of meat processing enterprises and veterinary and sanitary utilities. In the feed and technical products workshop, the raw materials department must be completely isolated from other sections of the workshop and the finished goods warehouse. Raw materials sent for
  14. Pre-production enterprises and enterprises with a full production cycle
    In pre-production enterprises and enterprises with a full production cycle, the following premises are designed: for receiving and storing products, production, for consumers, office and household, technical. The composition of the premises depends on the type of enterprise, capacity, degree of readiness of products and raw materials. The composition of the premises for the reception and storage of products include:
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