Classification of businesses
The three sectors
| Sector | What it does | Examples |
|---|---|---|
| primary | takes natural resources | farming, fishing, mining |
| secondary | makes goods | building, manufacturing |
| tertiary | provides services | shops, banks, transport |
- As a country grows richer, work shifts from primary to secondary to tertiary.
- De-industrialisation — the secondary sector shrinks as the tertiary grows.
Practice
Match each business to its sector.
Primary takes raw materials, secondary makes goods, tertiary provides services.
Practice
As a country becomes richer, most workers usually end up in the:
Development shifts the workforce toward the tertiary (services) sector.
Private and public sectors
- private sector — owned by private people; usually aims for profit.
- public sector — owned by the government; aims to provide a service (state schools, hospitals, the army).
Practice
The public sector is owned by:
Public-sector organisations are government-owned and aim to provide a service.
You've got it
Key idea
- primary (raw materials) → secondary (makes goods) → tertiary (services)
- richer countries shift toward the tertiary sector (de-industrialisation)
- private sector = profit; public sector = government service