Unit 1: Types of Sectors

Question 1

What is primary sector?

Answer 1

• It is the business activity involving the extraction of natural resources and is known as extractive production
• eg: farming, mining and fishing
• mainly found in developing countries and low income economies

Question 1

What is secondary sector?

Answer 1

• It is the business activity involving the construction and manufacturing of finished products. It transforms primary sector outcomes into finished good
• eg: food processing, engineers, carpentry
• mainly found in developing / middle - income economies

Question 2

What is tertiary sector?

Answer 2

• It is the business activity involving providing services to customers.

eg: hotels, cinemas, salons

• mainly found in developing / high income economies

Question 3

What is quaternary sector?

Answer 3

• It is the business sector which involves the creation or sharing of knowledge and information. know as knowledge economy

eg: ICT, middle and higher education, medical research

• it has a extremely high added value

Question 4

Why do entrepreneurs start a business

Answer 4

1. Autonomy: Many entrepreneurs value being their own Boses, which lead to faster decision making and flexibility for a work-life balance.
2. Challenge: personal drive to achieve goal and strive for self-actualization
3. Passion: entrepreneurs turn personal interest or belief into business opportunity.

Question 5

What are challenges of starting a business?

Answer 5

1. Lack of finance: Insufficient funds can lead to liquidity issues or bankruptcy
2. Lack of Human Resources: start up businesses can struggle hiring skills and experienced employees
3. Lack of market research: poor understanding of market demand can lead to unrealistic expectations.