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Classifying businesses
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Businesses can be grouped by what they do: take raw materials, make things, or provide services.
The three sectors
Primary sector: extracting raw materials from the earth or sea, such as farming, fishing, mining and forestry.
Secondary sector: turning raw materials into finished or semi-finished goods, such as manufacturing and construction.
Tertiary sector: providing services, such as banking, retail, transport, tourism and education.
Secondary sector: turning raw materials into finished or semi-finished goods, such as manufacturing and construction.
Tertiary sector: providing services, such as banking, retail, transport, tourism and education.
A chain of production
Many products pass through all three.
Wheat is grown on a farm (primary), milled and baked into bread (secondary) and sold in a supermarket (tertiary).
Wheat is grown on a farm (primary), milled and baked into bread (secondary) and sold in a supermarket (tertiary).
Changes over time
As countries develop, the share of jobs in the primary sector usually falls and the tertiary sector grows.
In many developed countries most people work in the tertiary sector.
In many developed countries most people work in the tertiary sector.
Classify: a car factory, a fishing boat, a hairdresser.
- Car factory makes goods: secondary.
- Fishing boat extracts raw materials: primary.
- Hairdresser provides a service: tertiary.
Answer: Secondary, primary, tertiary
Primary: extracting raw materials. Secondary: making goods. Tertiary: providing services. As economies develop, the tertiary sector usually grows.
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