The Business services industry represents a large and growing sector of the economy. This category of businesses includes industries such as Information Technology, Management Services, Consulting and Professional Services. These industries provide a variety of different services to help companies with their operations, productivity and overall efficiency. Many of these services are provided to other businesses, but a significant number are also offered directly to consumers as well.
The value that is associated with Business services does not result in a physical commodity, so these industries are considered tertiary. Services are often based on experiences, consultation or advice. These businesses are also called knowledge-based economies.
Most of the world’s wealth is created through the service industry. In fact, the service industry makes up more than half of all economic activity in some countries. In addition to providing a vital part of the economy, this sector offers opportunities for many small businesses to get started. Here are some of the basics of this lucrative industry:
Business-to-business services, or B2B, are a type of service that is provided to other businesses rather than to end consumers. Some of the most popular examples of B2B services include accounting, software development, IT support and marketing. The reason that this type of service is so important to a company is because it allows them to focus on their core competencies while outsourcing non-core activities to other companies.
A successful service business requires a comprehensive tool kit of elements that must be in place to ensure it can meet the needs and expectations of its target audience. The key is that a service business must be designed from the outset to appeal to an attractive and profitable group of customers. This requires a shift in thinking about design, which is typically focused on the characteristics of a product, to one that is concerned with the customer experience and how they compare with competitors.
Services are a crucial component of the economy, and there is an enormous range of services that businesses rely on to operate effectively. These services are intangible, but they still represent a major segment of the economy in many countries. The services industry provides jobs for millions of people around the world, and it contributes to a country’s GDP.
The following table contains the most current data available on employment and unemployment in this sector. It also includes estimates of gross job creation and loss, and projections for occupational employment change. The data are obtained from the Current Employment Survey (CES) and the Quarterly Survey of Hourly Earnings (QSH). The CES and QSH are representative samples of all nonfarming establishments with employees. The information is updated monthly. For more information about this dataset, including how the data are collected and how they are reported, see the CES/QSH Data Sources and Definitions document. The CES/QSH is one of three major surveys that collects information on the employment and earnings of workers in the United States. The other two are the Continuing Unemployment Rate Survey (CURT) and the Detailed Current Employment Survey (DCES).