Primary, Secondary and Tertiary Sectors
The Three Main Business Sectors
- Businesses can be classified according to the type of business sector in which they operate
- Classification into these sectors is a simplified way of categorising industries
- It helps to provide a means of making comparisons between firms in the same sector
- It does not capture the full complexity and interconnectedness of the business world
- Many businesses operate across multiple sectors or may not fit neatly into a single category
Diagram to Show Examples of Roles in the Primary, Secondary and Tertiary Sector
Farming in the primary sector, manufacturing in the secondary sector and hairdressing in the service sector
- The primary sector is concerned with the extraction of raw materials from land, sea or air such as farming, mining or fishing
The secondary sector is concerned with the processing of raw materials such as oil refinement, and the manufacture of goods such as vehicles
The tertiary sector is concerned with the provision of a wide range services for consumers and other businesses such as leisure, banking or hospitality
The chain of production
- The three sectors are linked in the chain of production which is the series of steps taken to turn raw materials into a finished product that can be marketed and sold
Diagram to show the Chain of Production in two Different Industries
Firms can often add value to their products throughout the chain of production