Different Types of Business Activity
Primary Activities
- Extraction and production of raw materials: Businesses, like farmers and miners, are involved in extracting natural resources from the environment.
- Manufacturing and construction: This involves turning the raw materials into finished goods or constructing buildings and infrastructure.
Secondary Activities
- Processing and assembly: Involves changing or combining raw or semi-finished goods to produce "finished" goods.
- Utilities: Cover companies that generate and distribute power, such as fuel, water or electricity.
Tertiary Activities
- Service provision: These are businesses, such as retail or restaurants, that provide services rather than tangible goods.
- Professional services: These include consultants, accountants, lawyers, or medical professionals who offer their expertise and knowledge.
Quaternary Activities
- Information services: Involves businesses that handle and process information, like data analysis or IT services.
- Research and development: These businesses are responsible for designing and developing new products and services, or finding new, more efficient ways of producing them.
Non-Profit Organisations
- Charities: These organisations help raise funds and provide support to specific causes or communities.
- Cooperatives: Owned and controlled by its members, profit shared among them.
- Public sector organisations: Operated by the government, they deliver public services without focusing on profit, such as schools and health services.
Finally, it is important to understand that most businesses carry out more than one type of activity. The activities that a business is engaged in can also change over time as the business develops and reacts to changes in its environment.