Service-oriented businesses provide services to customers and make up the majority of businesses in developed countries. They contribute to a major part of the global economy and include industries such as healthcare, transportation, and information services. Public services may or may not be considered part of the service industry and their funding is a subject of debate.
A service-oriented business is one that provides a service to its customers. Businesses and other businesses are generally classified according to the supply of goods or services. Those that supply goods include farms, mines, and producers. Banks, retail stores, and media outlets are all examples of service-oriented businesses. Such enterprises form the service industry, which is an important sector of the economy in developed countries.
Most analysts classify economic systems or money generators according to how they work. Systems based on natural resources, such as agriculture, logging, and mining, are called the primary sector, used in phrases like “primary sector jobs.” Manufacturing enterprises such as factories are considered the secondary sector and the service industry is sometimes called the tertiary sector. A simpler division is the commonly heard phrase “goods and services.” In this analysis, the first two economic sectors represent “goods” and everything else is a service.
According to calculations, service-oriented businesses contribute to a major part of the global economy. By some estimates, nearly a third of all jobs are in the service sector. The income generated by these businesses creates up to three-fifths of the world’s wealth in any given year. In developed nations such as the United States, Japan, and most of Europe, service-oriented businesses make up the majority of businesses. In developing countries, primary and secondary sector enterprises are generally more prevalent.
The definition of a service-oriented enterprise is very broad. Service-oriented businesses include restaurants and groceries, as well as retail stores of all kinds. The transportation, travel and hospitality industries are also vital services that enable people and goods to move anywhere in the world. Healthcare is a service-oriented business, as are the industries that maintain buildings and other public infrastructure. Information services, including software companies and Internet-based businesses, have become such an important part of the service industry that they are sometimes considered their own economic sector.
Some parts of the service sector don’t qualify as a “business,” such as public services — police, fire, or even government. Other industries, such as healthcare or prisons, vary by country. In some countries, these are run by government agencies and in other countries, they are part of the service-oriented business community. In the 21st century, the question of which services should be publicly or privately funded has become the subject of lively debate. When public services are curtailed by financially struggling governments, they are sometimes taken over by for-profit companies, a change that is controversial for many people.
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