Economic Model structure

Let’s get back to our simple model again. In order not to get to any specific tech complexities we are planning to create an organization to create high quality software in the ever charging market of computers/communications/applied devices. Suppose we don’t have any money or motivating resource, but there are lots of work force distributed around. Also we are not planning to get any credits and start with zero balance to achieve some value gain. The plan is to motivate workers and create self-growing enterprise to create, promote and sell software.

In order to achieve some initial growth we need to hire some kind of low skilled work force for training. They irregularly can make some kind of small work portions that help us to create a starting basic products. To make things clear let’s assume we have to perform only 3 basic activities – create, sell and maintain our software product. So our workforce primarily consists of sales and developers and we can get initial value gain from that based on training employees.

Economic environment

Let’s imagine an ideal market with minimal state regulations and high risk quite uncertain venture investments. To get a simple model lets say it is a specific currently almost indefinitely evolving economic branch with very high human engaged activities requiring as much qualification as possible. It is moderated at the society level (just like common good or commonweal for everyone) reasonably and all contracts are fulfilled with 100% guarantee.

In real world these simplifications may apply to some kind high level scientific research, advanced medicine, experimental technologies, hi-tech capabilities and that kind of staff.

So as currently observed in most current states the organizations don’t tend to evolve and keep growing to some stable size and then go to some kind of decay or deprecation.

The question is – is it possible and how to make a self-growing and self-evolving organization in these conditions ? Are there some fundamental restrictions for these kind of economical structures and what are the major restricting factors ?

There are some ideas on that for this topic in our Economics StackExchange discussion.