Classification of businesses
Stages of Economic Activity
1. Primary Stage
This is the first stage of production.
It involves using the Earth’s natural resources.
Examples: farming, fishing, forestry, mining, and extraction of materials such as oil and copper ore.
The output of this sector is raw materials.
2. Secondary Stage
This stage uses the raw materials from the primary sector.
It converts these materials into manufactured or processed goods.
Examples: construction, car manufacturing, aircraft production, computer assembly, and bread baking.
The output of this sector is finished or semi-finished goods.
3. Tertiary Stage
This stage provides services to consumers and other businesses.
It does not produce goods but supports production and consumption.
Examples: transport, banking, retail, hotels, insurance, and hairdressing.
The output of this sector is services.