The purpose and nature of businesses - AQABusiness sectors and business functions
Entrepreneurs may choose to set up a business for a number of reasons and there are a number of business sectors that it can be in. To be successful, entrepreneurs need to have a number of characteristics.
Businesses can be split into different sectors depending on what they do. These sectors are primary, secondary and tertiary.
Primary Sector
The primary sector is made up of businesses that produce or extractraw materials Raw materials are unprocessed basic materials from which products can be made. . This is the first stage of the production process and includes fishing, farming and mining.
Secondary Sector
The next stage in the production process is the secondary sector which makes or manufactures goods. They take the raw materials from the primary sector and turn them into finished goods. This often takes place in factories and includes food manufacturers such as Heinz and car manufacturers such as BMW.
Tertiary Sector
The final stage in the production process is the tertiary sector. This sector provides services. This includes estate agents, hairdressers and restaurants.
Business Functions
There are four main business functions that work together to make a business successful. These are marketing, operations, human resources and finance.
