1. Types of Business Activity
Classification of Business and Industrial Activity
Primary ActivitiesPrimary businesses and industries are those which extract (i.e. mine, quarry, farm, fish or drill) things normally provided by nature, e.g.
~ fish from the sea;
~ metal from the earth;
~ food from the land.
They produce raw materials in the form of oil, iron, coal or limestone, which are used to make other products. Also, they may also produce final products such as fish or fruit.
Secondary businesses and industries are those involved in manufacturing products.
That is, they turn the raw materials produced by the primary industries into things that can be sold and used. e.g.
Tertiary businesses and industries are those involved in selling goods and services. For example, banks, window cleaners, hairdressers and lawyers do not make things but instead sell a service or their expertise. Other examples include transport, insurance and places of entertainment such as leisure centres and cinemas.
Chain of ProductionPrimary, Secondary and Tertiary businesses and industries all depend upon each other; one cannot exist without the other. There is a chain of production which links all 3 kinds of activity. For example, the chain of production for a wooden chair might be:
Forester .>>>> Furniture Manufacturer >>>> Furniture Shop
and the chain of production for a woolen sweater might be:
Sheep Farmer >>>> Knitter >>>> Market Stall
Changes in Business Activity Over Time