Identify three sectors within the UK economy in which a business can operate

Identify three sectors within the UK economy in which a business can operate

Identify three sectors within the UK economy in which a business can operate. What are the differences between the three sectors? Comment on their value to the UK economy

To Identify three sectors within the UK economy in which a business can operate, Enterprises can also be categorized according to their operations and business processes. The distinction of companies by industry or sector is extremely frequent. An industry is comprised of companies connected to their core operation, such as the production of vehicles or the sale of food products. A particular company, based on its principal activity, is categorized as part of a given economy.

Primary

The primary industry sector concerns the exploitation from the land of raw materials or mineral wealth. Any company that produces products or harvests land materials is classified as a primary sector enterprise (Johnston, 2011). For instance, agricultural, mining, fisheries or oil production firms operating in the primary industry.

Secondary

Manufacturing is the secondary sector of the economy (Deakins, Bensemann and Battisti, 2016). The raw materials of the primary industry are acquired and converted into new goods by these manufacturing companies. For example, automobile manufacturers, or food manufacturing companies are enterprises operating in the secondary sector.

Tertiary

A service is a matter for the tertiary sector of the UK economy. Services are actions for customers carried out by individuals or companies. Instances that run in the tertiary sector are hairdressers, banks, supermarkets or movie theatre businesses.

Identify three sectors within the UK economy in which a business can operate

Differences among the sectors

Primary sector Secondary sector Tertiary sector
The primary sector extracts and make businesses with natural resources for producing further goods and services (Deakins, Bensemann and Battisti, 2016). By manufacturing more from the primary products, secondary sectors transform one product into another. This industry offers both primary and secondary sector services.
The primary industry is mainly unorganized using archaic techniques. The secondary industry employs and is organized by more dependable manufacturing processes. This industry is well organized, using contemporary logistical systems to perform its operations.
The forestry, agricultural and mining industry are included here. It includes production units, corporate giants, small units and multinationals (Deakins, Bensemann and Battisti, 2016). The industry is covered by trade insurance, finance and telecommunications.

Value to the UK economy

Considering the contribution to the economy, the largest proportion of UK GDP comes from the services or tertiary sector, especially from the tourist industry. The economy is still in operation. In 2017, nearly £214 billion, approximately $277 billion, were contributed to GDP by travel and tourism, and the projections are rising (O’Neill, 2017). In comparison, the agriculture industry generated only GBP 10.3 billion in the same year.

The primary sector will constitute the largest component of the economy in less developed nations. In general, the growth of the economy will allow people to exit the agriculture industry and migrate to other industries, such as manufacturing and service.

In the United Kingdom, around 3% of the workforce are involved in agriculture, mining and mining industries, representing around 12% of GDP. On the other hand, there is roughly 10 per cent of secondary or manufacturing sectors and 78 per cent of tertiary services (ONS, 2010).

Nuclear reactors and the automotive industry are the major products in the secondary sector of Great Britain. The primary sector is concerned with mineral and oil fuels, as it concerns oil extraction and not the production of a finished product.

The United Kingdom became one of the earliest industrialised nations (Singh, 1977). It was one of the earliest – deindustrialisations also. The manufacturing industry is becoming a smaller part of the whole economy. This is a sequential progression within the sectors of the economy.

Yet, in the secondary sector, larger earnings are possible because of increased production income elasticity. However, pollution from the manufacturing production process is not a part of the sustainability plan of the developed nations like the UK.

These are the reasons why the contribution of the tertiary sector is the most in the UK.

 

References

Deakins, D, Bensemann, J & Battisti, M 2016, ‘Entrepreneurial skill and regulation’, International Journal of Entrepreneurial Behavior & Research, vol. 22, no. 2, pp. 234–259.

Johnston, 2011, ‘The Economic Performance of UK Cities, 1995–2005: Driven by Knowledge-based Sectors or Consumption-based Sectors?’, European Planning Studies, vol. 19, no. 12, pp. 2095–2108.

O’Neill, 2017, United Kingdom – Distribution of GDP across economic sectors 2017 | Statista, Statista, Statista, viewed 26 June 2021, <https://www.statista.com/statistics/270372/distribution-of-gdp-across-economic-sectors-in-the-united-kingdom/>.

ONS 2010, Release Edition Reference Tables, webarchive.nationalarchives.gov.uk, viewed 26 June 2021, <https://webarchive.nationalarchives.gov.uk/20160107070948/http://www.ons.gov.uk/ons/publications/re-reference-tables.html>.

Singh, 1977, ‘UK Industry and the World Economy: A Case of de-Industrialization?’, Welfare aspects of industrial markets, pp. 183–214, viewed 6 April 2021, <https://link.springer.com/chapter/10.1007%2F978-1-4613-4231-1_10>.

 

Written by

Md. Shadequr Rahaman

Email: [email protected]

Identify three sectors within the UK economy in which a business can operate

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