business sectors Flashcards
3 main sectors
primary
secondary
tertiary
primary sector
description
examples
obtaining natural resources from nature
raw materials sold to secondary sector
examples
mining
fishing
agriculture
forestry
secondary sector
description
examples
convert raw materials into final products for consumers
manufacturing factories, energy and construction generation
examples
* Manufacturing
industry
* Construction industry
* Generation of
electricity
* Provision of water
tertiary sector
description
examples
all industries offering direct services / products to consumers
aka service industry
examples
* Retailers
* Wholesalers
* Banks
* Insurance
* Transportation
* Tourism
* Hospitality industry
FORMAL and INFORMAL SECTORS.
formal
- legally registered, pays taxes
- incl in GDP
informal
- not legally registered, dont pay taxes
- not incl in GDP
IMPORTANCE of the INFORMAL sector
- Provide work and income w/in , alleviating poverty.
- gain work experience that can be used in the
formal sector. - Encourage entrepreneurship as self-employment.
- Give the marginalised and disadvantaged opportunities
- A buffer between work and unemployment.
PUBLIC
SECTOR
- industries controlled by the government who offer support services to the community.
- These services are under-valued by the market, therefore the government must render the services to the citizens of the country.
often essential services - Example: Waste removal, education, law enforcement, etc.
PRIVATE
SECTOR
- aim of private sector is profit
- owners raise the capital to start the business.
- share in the profit of the business
- When government sells a business in the public sector to private sector the process is known a privatisation.
- Examples: Banks, Restaurants, Hotels, Retail stores, etc.
Justify the IMPORTANCE of the PUBLIC SECTOR
- all state-controlled businesses.
- meet the needs of the community.
- do not attempt to make a profit.
- Provide jobs
- Improve the general standard of living
- Control pollution and protect and conserve natural resources
- Ensure that the wealth of the land is divided equally between poor and rich ppl
- Provide valuable public services such as roads, hospitals, schools.
- can outsource services to private businesses.
List the Socio-economic issues that have an IMPACT ON THE BUSINESS:
- Inequality and poverty
- Inclusivity
- HIV/Aids
- Gambling
- Piracy
o Copyright
o Patent
o Trademarks - Counterfeiting
- Strikes (Go slows and Lockouts)
- Bootlegging
- Political disturbance
- Crime
meaning of socio economic issues
social and economic factors w/in the macro environment that affect the functioning and productivity of a business
why socio economic issues are a challenge to the business
if employees are affected by any socio economic issues e.g hiv/aids it affects their ability to work contributing to a lack of productivity
crime leads to the business incurring losses
