Business services are activities that benefit companies without producing a tangible product. They can improve productivity, safety and convenience for employees, and save money for companies that need to focus on production. There are many types of business services, including warehousing, marketing and inter-departmental communication. Some business services are provided by third-party providers, while others are offered in-house. A company might hire a business service provider to improve efficiency or meet specialized needs, such as providing child care or transportation.
In economic theory, business services are considered the tertiary sector of commerce, encompassing all industries that do not produce a physical good. The primary sector consists of agriculture, mining and farming, while the secondary sector is comprised of manufacturing and distribution. The tertiary sector, which includes business services, is an important part of the economy in most countries. It provides jobs, and contributes a significant amount of GDP.
Many businesses outsource business services to third parties because they do not have the necessary resources or expertise in-house. For example, a company may hire a payroll management service to process employee paychecks, or an IT service provider to handle a specific technology project. In addition, business services can help a company reach a target audience and build brand awareness by offering advertising services.
This article is part of a series on how to start and grow a small business. Read our other articles in the series to learn more about preparing to launch a small business, marketing strategies, and hiring employees.
The professional and business services supersector is a key driver of the economy. These industries provide vital services that enable other sectors to operate, such as shipping and logistics, insurance, banking, IT, accounting, and cleaning. The industry is also important to the economy because it employs large numbers of people.
In the US, the professional and business services industry generates more than half of all GDP. It is a significant source of employment and income, especially in lower-income states. The industry has grown rapidly in recent years, and is expected to continue growing over the next decade.
There are many types of jobs in the professional and business services supersector, from entry-level positions to executive roles. Some of these jobs require only a high school diploma or GED certificate, while others may require a bachelor’s degree or higher.
Some of the most popular business services are IT support, translation and interpretation, notary services, and warehousing. Many of these services can be provided remotely, and there is a strong demand for them from businesses worldwide. These services are essential for businesses to operate effectively and efficiently.
A variety of legal issues affect the business services industry, such as privacy, intellectual property, and labor laws. It is also a highly globalized industry, with workers from many different cultures working together to deliver these essential services. The success of the business services industry is dependent on the ability to adapt to changing market conditions and technological advances.