Ajshr, Vol. 1, No. 4, August-september 2020

Table 1 
The main distinguishing features of production and service economies
1
 
The main features 
Types of economies 
Production economy 
Service economy 
Leading sector of the economy 
Industry 
Performance of service 
Main production resource 
Capital 
Knowledge and information 
Content of economic growth 
Quantitative (measured by 
number of mass production, 
i.e. by quantity) 
Quality, social orientated 
(measured by quality of life) 
Effective activity 
The ability to produce as 
many consumer goods as 
possible at minimal cost. 
Improving the quality of life 
in society, the ability to 
meet the needs of social 
goals as much as possible. 
1
Worked out by the author. 

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AJSHR, Vol. 2, No. 6, 2021
58
 
Published by “Global Research Network LLC" 
https://grnjournals.us/index.php/AJSHR 
At the same time, summarizing views on the world economy, it can be noted that the effective 
functioning of economic entities means the commonality of economic and political policy indicators. 
Therefore, it corresponds to a generalizing concept - a socio-economic concept. This concept reflects 
a double view of effectiveness, i.e. quantitative and qualitative aspects (Figure 1). 
 
 
 
Figure 1. Efficiency of business entities
 2
 
Economic efficiency reflects the results of the activities of entrepreneurs, and social efficiency 
reflects the social efficiency of business entities, its impact on various aspects of society. At the same 
time, social and economic efficiency are to some extent interdependent. Achievement of social 
efficiency is the improvement of the social conditions of people’s life, which makes it possible to 
increase economic efficiency. As a result, this affects a person's ability to work, which leads to an 
increase in their labour productivity. At the same time, a material base is needed for the 
implementation of social programs. This material base is achieved by increasing the economic 
efficiency of enterprises. Thus, the new content of effective activity in the service economy can be 
expressed as follows: performance is not measured by the essence or content of the concept of 
efficiency, but is determined by indicators that make up social efficiency. These indicators have a 
broader meaning than indicators that determine economic efficiency. Changing the quality conditions 
that make up efficiency requires assessment of the efficiency of business entities. At the same time, it 
is generally accepted that social effectiveness cannot be reduced to an accurate quantitative 
measurement. Thus, traditionally, efficiency can only reflect its economic nature, making it difficult 
to measure its social and socio-economic aspects through quantitative criteria. This point of view is 
widespread in economics today. At the same time, research related to the solving the problem of 
assessing efficiency in the service economy is becoming more and more relevant, and the need for 
research in this area, in our opinion, is much higher.