Module 1 unit 3

Unit 3: The Tertiary Sector

• The tertiary sector, also known as the service sector, includes jobs focused on providing services rather than goods.

• Encompasses any business or government department that provides a service to the community.

Public Services

• Defined as community and social services provided by the government.

• These services are constructed, supplied, and maintained by the government.

• Examples include:

  • Roads

  • Schools

  • Clinics

Private Services

• Aimed at making a profit and require consumer payment for use.

• Include personal services such as:

  • Banks

  • Retailers (stores)

  • Private hospitals

  • Lawyers

Types of Businesses in the Tertiary Sector

1. Wholesale and Retail Trade, Catering, and Accommodation

• Wholesale Businesses: Buy final goods from producers and sell to retailers; may also sell directly to consumers (e.g., Makro Stores).

• Retailers: Sell final goods directly to consumers (e.g., Spar, spaza shops).

• Catering Services: Provide food to consumers; examples include restaurants like Wimpy and KFC.

• Accommodation Services: Offered by hotels and bed-and-breakfasts; provide places to stay.

2. Transport, Storage, and Communication

• Transport Services: Involve moving goods and people via trucks, trains, and taxis.

• Storage Services: Required for bulky goods like maize, fuel, and water.

• Communication Services: Include radio, TV, newspapers, telephones, and computers. Examples:

  • Public Sector: SABC and Telkom

  • Private Sector: Times Media and Vodacom

3. Financial Intermediation, Insurance, Real Estate, and Business Services

• Financial Intermediation: Services provided by banks that bridge savers and borrowers.

• Insurance Services: Policies sold to protect individuals from losses resulting from risks (e.g., fire, theft, death).

• Real Estate Services: Help facilitate transactions involving fixed property like houses and offices.

• Business Services: Professional services offered by individuals such as economists, lawyers, and bookkeepers; often require advanced education and training.

4. Community, Social, and Personal Services

• Community Services: Mainly provided by the public sector, including protection (e.g., police services) and sanitation.

• Social Services: Include medical assistance (hospitals, clinics) and education (schools, universities).

• Entertainment: Provided by both public and private enterprises.

• Personal Services: Offered by private businesses, encompassing repairs (plumbing, electrical, mechanical), dry cleaning, and hairdressing.

Types of Skills Required in the Tertiary Sector

Entrepreneurial Skills

• Entrepreneurs take calculated risks and seize opportunities.

• Possess foresight enabling them to invest in new products, services, and markets.

• Crucial for economic growth; only about 7% of South African adults are engaged in entrepreneurial activities.

Sustainable Use of Resources

• Emphasizes the need for sustainable development in the tertiary sector.

• Basic education is essential for skill development.

• Scarce Skills by Sector:

  • Primary Sector: ABET, team building, problem-solving, communication skills, industrial relations, managing health issues.

  • Secondary Sector: General management, supervisory skills, leadership skills, facilitation skills, ABET entrepreneurship, IT skills.

  • Tertiary Sector: Analytical and interpretive skills, understanding financial regulations, report writing, communication, leadership skills, customer service, and occupational health and safety.