Understanding Business Sectors in IGCSE

Mar 13, 2025

Mindmap

IGCSE Business Studies: Classification of Businesses

Sectors of Business

Primary Sector

  • Involves extraction of natural resources from the land.
  • Examples: Farming, Mining, Fishing, Wood Cutting, Coffee Picking.
  • Commonality: Utilizing Earth's resources for human benefit.

Secondary Sector

  • Manufacturing of goods using resources from the primary sector.
  • Examples: Car manufacturing, Steel refining, Cloth production, Coffee roasting.
  • Focuses on transforming raw materials into products.

Tertiary Sector (Service Sector)

  • Includes services such as Banking, Investment, Hotels, Travel Agencies, Hair Salons.
  • Characteristics: Offers experiences or services rather than physical products.

Changes in Sector Importance

  • Developed countries:
    • Higher education levels lead to increased income.
    • Increased demand for tertiary sector services.
  • Industrialization:
    • Shift from primary to secondary sector.
    • Example: China’s transformation into a manufacturing powerhouse.

Business Sectors

Private Sector

  • Owned by private individuals with aims of profit and expansion.
  • Examples: Apple, Adidas, Tesla.
  • Main objectives: Profit-making, market share increase.

Public Sector

  • Owned by the government with aims of public service.
  • Objectives: Meet government targets, provide public and affordable services.
  • Examples: Indian Railways, public libraries, education, hospitals.
  • Main aim: Benefiting society.

Examination Questions

Public Sector Objectives

  • Provide affordable services for all.
  • Offer services universally accessible.

Private Sector Aims

  • Increase market share, leading to competition.
  • Maximize profit for quality improvement and reliability.

Changing Importance of Primary Sector

  • Industrialization:
    • Leads to job creation in secondary sector.
    • Example growth: 15% increase in secondary sector jobs.
  • Higher Education Levels:
    • People seek higher-paying jobs.
    • Example growth: 25% increase in tertiary sector jobs.

Examination Strategies

  • Utilize specific strategies for paper 1 styled questions.
  • Strategy resources available for further learning.

Note: The percentages mentioned are assumed to be correct as per the referenced data table.

Hope this summary aids in your study and understanding of the classification of businesses in IGCSE Business Studies.