Private sector industries are not controlled by the government and are divided into industrial, commercial, and agricultural categories. Industrial companies produce goods, while commercial companies sell goods and services. Agricultural enterprises grow or harvest produce. These three types of industries often work together to provide consumers with a product.
The term “private sector industries” refers to companies and corporations that are not controlled by the government. Such companies are generally divided into three categories: industrial, commercial and agricultural. Industries are those that produce goods, while commercial ones sell goods and services. Farms produce and distribute food products and other items that are grown or raised.
In developed countries, industrial companies traditionally represent a significant proportion of private sector industries. These include companies that produce components and those that assemble them into finished products. Numerous specific industries fall under the industrial umbrella, including automotive, aeronautics, textiles, pharmaceuticals, bioengineering, and metal smelting. Food refiners and packers generally fall under the industrial category due to the types of facilities needed for production.
The commercial private sector industries are further divided in two ways. The first is how they sell their product. Commercial industries that sell goods to the general public are called resellers. This includes traditional outlets such as grocery stores, specialty stores, department stores and drug stores, but also includes online outlets such as online clothing stores or online book sellers.
Some commercial private sector industries buy from manufacturers and sell to resellers. These corporations are called wholesalers. Not all commercial industries involve wholesalers. In some cases, the retailer may buy directly from the manufacturer. Industries that commonly use wholesalers include manufactured flowers, office supplies, and housewares.
The second way of dividing the commercial segment is by the type of product the company sells. Companies that sell tangible items sell goods. This can be anything from a computer program to a car to a pair of shoes. Other commercial companies sell services such as house cleaning, bookkeeping or automotive repair. In some cases, the business may sell both goods and services.
Agricultural enterprises are the subset of private sector industries that grow or harvest produce. This generally refers to all agricultural businesses, whether a small family business or a multinational growing conglomerate. Products include meats, grains and vegetables.
The three major types of private sector industries often work together to provide consumers with a product. For example, a farmer whose farm is a working farm might grow green beans. He then he sells them to a food packaging company, which is part of the industrial segment. That company processes and packages the beans. The packer then sells the resulting can of green beans to a grocery store which, as a commercial retailer, sells the can to a consumer.
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