Classification of Business Activities - Industry

Industry refers to the process of transforming raw materials into usable goods through the combined efforts of manpower, machines, and capital. It includes production, processing, mining, and animal breeding.

Goods can be

• Consumer goods: Used by people.
• Capital goods: Used by other industries.

Primary industry uses natural resources directly from nature.

Types of Primary Industry:

1. Agriculture Industry: E.g., farming, land cultivation. Quality depends on soil, climate, and rainfall.
2. Extractive Industry: Obtains products from the earth, water, or air. E.g., mining, fishing, forestry.
3. Genetic Industry: Concerned with the breeding and reproduction of plants/animals. E.g., animal husbandry, sericulture (silkworm farming), horticulture.

Secondary industry processes raw materials from primary industries into finished or semi-finished goods.

Types of Secondary Industry:

1. Manufacturing Industry: Transforms raw inputs into new products. E.g., textile mills (cotton to cloth), food processing (tomatoes to ketchup).
2. Construction Industry: Builds structures such as bridges, roads, and buildings. The output is typically immovable.

Tertiary industries support primary and secondary industries by providing services, not goods.

Examples:

• Transport (delivering goods)
• Banking (financial support)
• Tourism, Hotels, Entertainment

A farmer (Primary) grows wheat → A flour mill (Secondary) processes it → A bakery uses transport/logistics (Tertiary) to deliver bread.

• Primary: Natural resources (growing/extracting).
• Secondary: Manufacturing and construction.
• Tertiary: Services (banking, transport, etc.).
• All three are interconnected for business success.