BUSINESS SECTORS

The economy is divided into three sectors, the primary, secondary and tertiary sectors.

The Primary Sector: involved in the mining/growing/farming of raw materials. Raw materials are natural products of nature which can be divided into five broad categories:

1. Agriculture

2. Animal farming

3. Fishing

4. Forestry

5. Mining

The Secondary Sector: involved the processing & packaging of raw materials. Most products undergo several forms of processing before they are ready for sale. The secondary sector includes all processes up until the point of the product’s distribution for sale, including packaging.

The Tertiary Sector: Includes the distribution of processed goods (& occasionally raw goods) for sale, as well as the sale of the goods. It also includes the service sector. Personal services: are done for individuals [hairdressers and teachers] Commercial services: are done for businesses [transport & storage]. Tertiary services occur throughout the production process, both the primary & secondary sectors make use of tertiary services.

Although the 3 business sectors can be discussed separately, they are interdependent, meaning that they are mutually dependent on each other to function. The primary sector gathers the raw materials, the secondary sector puts the raw materials to use, and the tertiary sector sells and supports the activities of the other two. Many companies will have components of all three sectors, such as a dairy farmer who makes cheese and ice cream and distributes the products to stores for sale. Other companies may strictly focus on one particular aspect, such as manufacturing a particular kind of product only. Together these sectors make up the backbone of the modern economy.

 RELATIONSHIP BETWEEN THE PRIMARY, SECONDARY AND TERTIARY SECTORS

·         Products or services pass through the different sectors in a series of stages before they reach the final consumer. Often all three sectors will be involved in the manufacturing of one product, before it reaches the final consumer.