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Primary, Secondary and Tertiary Sector

The document discusses three sectors: primary involving natural resources, secondary involving manufacturing, and tertiary involving services. It describes how the sectors have changed over time with more countries becoming industrialized and now developed economies focusing more on services.

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272 views1 page

Primary, Secondary and Tertiary Sector

The document discusses three sectors: primary involving natural resources, secondary involving manufacturing, and tertiary involving services. It describes how the sectors have changed over time with more countries becoming industrialized and now developed economies focusing more on services.

Uploaded by

ijsjhsaog
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Primary, Secondary and Tertiary Sector

Businesses  can be classified into three sectors:

Primary sector: this involves the use/extraction of natural resources.


Examples include agricultural activities, mining, fishing, wood-cutting,
oil drilling etc.
Secondary sector: this involves the manufacture of goods using the
resources from the primary sector. Examples include auto-mobile
manufacturing, steel industries, cloth production etc.
Tertiary sector: this consist of all the services provided in an economy.
This includes hotels, travel agencies, hair salons, banks etc.
Up until the mid 18th century, the primary sector was the largest
sector in the world, as agriculture was the main profession. After the
industrial revolution, more countries began to become more
industrialized and urban, leading to a rapid increase in the
manufacturing sector (industrialization).
Nowadays, as countries are becoming more developed, the
importance of tertiary sector is increasing, while the primary sector is
diminishing. The secondary sector is also slightly reducing in size (de-
industrialization) compared to the growth of the tertiary sector . This is
due to the growing incomes of consumers which raises their demand
for more services like travel, hotels etc.
 

Private and Public Sector


Private sector: where private individuals own and run business ventures.
Their aim is to make a profit, and all costs and risks of the business is
undertaken by the individual. Examples, Nike, McDonald’s, Virgin
Airlines etc.
Public sector: where the government owns and runs business ventures.
Their aim is to provide essential public goods and services (schools,
hospitals, police etc.) in order to increase the welfare of their citizens,
they don’t work to earn a profit. It is funded by the taxpaying citizens’
money, so they work in the interest of these citizens to provide them
with services.
Example: the Indian Railways is a public sector organization owned
by the govt. of India.

In a mixed economy, both the public and private sector exists.

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