This document discusses how the importance of different business sectors has changed over time. It explains that countries have transitioned from developing to developed as industrialization increased the importance of the secondary sector. Now, many countries are undergoing de-industrialization as the tertiary sector becomes more important. Consumer and business behaviors have also evolved, with consumers demanding higher quality products and businesses needing to communicate more effectively. Most economies now have both private and public sectors, with the private sector focused on profit and consumer choice, and the public sector prioritizing government objectives.

1. Changing importance of
business classification

2.  Countries are often described as developing or
developed.
 Developing country-has a small industrial sector and
lower standard of living compared to other countries.

3.  Industrialization-The growing importance of
secondary sector business activity and the reduced
importance of primary sector business activity.
 De-industrialiasation- The growing importance of the
tertiary sector and the reduced importance of the
secondary sector.

4.  Industrialisation: China, India
 De-industrialisation: UK, USA

5.  Higher income, demand better quality and a wider
choice of products.
 Better education- expect better products
 More leisure time- consumers work fewer hours
A change in consumer behaviour

6.  The need for finance to fund expansion
 The need to be able to communicate internally and
externally quickly
 The need to provide better services for their
employees, for example canteens.
A change in business behaviour
resulting from:

7.  Most countries in the world have mixed economies.
These are economies that have both private sector
and public sector organisations.
 Mixed economy: An economy where the resources
are owned and controlled by both the private and
public sectors.
Business enterprises in the private
and public sectors

8.  Private sector: The part of the economy that is
owned and controlled by individuals and companies
for profit.
 Public sector: The part of the economy that is
controlled by the state or government.
Business enterprises in the private
and public sectors

9.  Private Sector
 Sole Trader
 Partnerships
 Limited Companies
 Franchises, Joint Venture, Social Enterprise

10.  Public Sector
 Government Departments
 Public Corporations
 Nationalised Industries

11. Private Sector Public Sector
What to produce Consumer choices The government
decides
How to produce Firms want to make
profit
The government
decides
For whom to produce Customers buying
power
The government
decides

12.  In the private sector consumers want to buy certain
goods and services.
 Business only produce goods if they can make a
profit.
 Businesses decide the best way of producing their
products.
Private sector decisions

13.  The decisions about what, how and for whom to
produce in the public sector are all made by
government.
 The public sector in many countries produces goods
and services that all people in the population need.
 E.g. electricity, roads, education and health care.
Public sector decisions