Classification of business

Primary sector

The sector of the economy that involves the use/extraction of natural resources, such as agriculture, mining, fishing, etc.

Secondary sector

The sector of the economy that involves the manufacture of goods using resources from the primary sector, such as automobile manufacturing, steel industries, cloth production, etc.

Tertiary sector

The sector of the economy that consists of all the services provided, such as hotels, travel agencies, hair salons, banks, etc.

Industrialization

The process of countries becoming more industrialized and urban, leading to a rapid increase in the manufacturing sector.

De-industrialization

The reduction in the size of the secondary sector compared to the growth of the tertiary sector, as countries become more developed.

Private sector

The sector of the economy where private individuals own and run business ventures with the aim of making a profit, such as Nike, McDonald's, Virgin Airlines, etc.

Public sector

The sector of the economy where the government owns and runs business ventures with the aim of providing essential public goods and services, such as schools, hospitals, police, etc.

Mixed economy

An economic system where both the public and private sectors exist, allowing for a combination of government-owned and privately-owned businesses.