🌍 The Four Sectors of Business Activity
Big Idea: All businesses can be classified into four sectors based on what type of economic activity they perform.
Think of it as a chain: raw materials → manufactured goods → services → knowledge!
- Primary sector — extracts raw materials
- Secondary sector — manufactures products
- Tertiary sector — provides services
- Quaternary sector — provides knowledge/information
⛏️ Primary Sector
Businesses that extract raw materials from the earth.
- Farming and agriculture
- Mining and quarrying
- Fishing
- Forestry
- Oil and gas extraction
Primary = First step = Getting stuff from nature 🌱
🏭 Secondary Sector
Businesses that manufacture or construct products from raw materials.
- Car manufacturing
- Food processing
- Construction
- Electronics production
- Textile manufacturing
Secondary = Second step = Making stuff from raw materials 🔨
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🛍️ Tertiary Sector
Businesses that provide services to consumers and other businesses.
- Retail shops
- Banks and insurance
- Healthcare
- Transport
- Hospitality and tourism
Tertiary = Third step = Selling stuff or helping people 🛒
🧠 Quaternary Sector
Businesses focused on knowledge, information, and intellectual activities.
- Research and development (R&D)
- IT and software development
- Consultancy
- Education
- Scientific research
Quaternary = Fourth step = Thinking and creating knowledge 💡
In developed economies, tertiary and quaternary sectors dominate. In developing economies, primary sector is often larger.