Classification of business

Chapter-2
 The three sectors
In every country businesses are classified into three different sectors
• Primary
• Secondary and
• Tertiary

Fishing

Primary Secondary Tertiary

 The three sectors
The primary sector
The primary sector is the place where we deal with the natural resources. It uses the natural resources to produce
materials such as coal, oil and gas which is used by other sectors. This includes-
• Farming
• Fishing
• Mining and etc.

The secondary sector

The secondary sector is the place where all production take place. It takes the materials produced by the primary
sector and uses them to produce goods. This includes all the production factories such as-
• Food Industry
• Glass industry
• Electrical industry and etc.

The tertiary sector

The tertiary sector is the place where we provide services to the population. It allows the population to use the
finished goods. This includes
• Banking
• Schools
• Hotels
• Stores/markets and etc.
 Type of countries
There are two types of countries-
• Developed countries
• And Developing countries

Developed countries
Developed countries are high in incomes, high level of education
and health care, reduced poverty and increased freedom.
High numbers of people employed in the tertiary sector.
The level of output from primary sector is often low and
the output of the tertiary sector is often higher than other
two sector combined. Most of their goods are imported from
other countries.

Developing countries
Developing countries are low in incomes, low level of education and health care, reduce productivity, poor housing
and high rates of population. High numbers of people are employed in the primary sector. In developing countries
manufacturing industries have only been established. The level of output from primary sector is mostly higher than
the other two sector. People in developing countries are poorer than people in developed countries.
 Different Economies
Country Primary Second Tertiary
How its classified? ary
The three sectors are usually classified by UK 3% 23 % 74 %
• The percentage of country’s total number of workers employed in each sector
Or Zimbab 40 % 32 % 28 %
we
• The value of output of goods and services by each sector

As you see in the table the UK or the United Kingdom have 74% for the tertiary sector. Nearly all businesses in this
country are services such as banks, hotels and hospitals. There is only 3% for the primary sector and 23% for the
secondary sector. Since only 3% is extracting raw materials from the earth so the raw materials to which are used
to manufacture may possibly be imported from other countries. This is a developed country.

On the other hand Zimbabwe has 40 % for primary sector. A little less than half of all the businesses in this country
is involved in physical work, extracting resources from earth. Secondary is 32% and tertiary is 28%, so most of the
extracted resources are exported to countries like the UK. This is a developing country.
De-Industrialization
What is de-industrialization?
De-industrialization is when a country shifts lots of job in primary and secondary sector jobs to tertiary. It’s from
extraction and production to a service.