business

• Business Sectors


  • Primary sector
  • Secondary sector
  • Tertiary sector
  • Formal sector
  • Informal sector
  • Private sector
  • Public sector
• Primary sector


  Deals with the extraction of raw materials and natural resources
• Secondary sector


  Involves the process of transforming raw materials into finished or unfinished products
• Tertiary sector


  Refers to industries that offer services to other businesses and consumers
• Formal sector


  Businesses that are registered and pay taxes to the government
• Informal sector


  Businesses that are not registered and do not pay tax on profits
• Private sector


  Businesses owned, managed, and controlled by individuals and organisations seeking to generate profit
• Public sector


  Part of the economy where goods and services are provided by the government or local authorities
• Relationship between the three sectors

  1. Primary sector gathers raw materials

  2. Secondary sector transforms raw materials into useful goods

  3. Tertiary sector distributes the goods or services and supports the activities of the primary and secondary sectors
• Journey of a packet of Lays chips through the three sectors


  • Primary sector: Potatoes grown by Darling Potatoes
  • Secondary sector: Potatoes sold to Simba, who manufactures Lays chips
  • Tertiary sector: Lays chips sold to retailers, who sell to consumers

  
• Formal sector


  Registered businesses who pay taxes to the government, activities included in GDP
• Informal sector


  Unregistered businesses that do not pay tax, activities not included in GDP
• Public sector


  Industries controlled by the government, offering essential services to the community
• Private sector


  Businesses owned by individuals/organisations, aim is to make a profit
• The importance of the formal sector
• The importance of the informal sector
• Contemporary Socio-Economic Issues


  • Inequality
  • Poverty
  • Inclusivity
  • Gambling
  • Counterfeiting/imitations
  • Bootlegging
  • Piracy
  • Strikes
  • Political disturbances
  • Labour disputes
  • Go slows
  • Lockouts
  • Crime
• Socio-economic issues


  Aspects that have a negative effect on the individual, communities, and business. Societal and economic factors in the macro environment.
• Reasons why socio-economic issues pose a challenge to businesses
• Inequality


  Arises when some individuals are more prosperous than others or are given better opportunities than other individuals in society. Contributes to poverty.
• Poverty


  The lack of resources to meet basic human needs. Often gives rise to crime.
• Impact of inequality and poverty on businesses
• Inclusivity


  Means that everyone should have access to equal opportunities irrespective of race, gender, sexual orientation, disabilities, religion, and education.
• Purpose of inclusivity in the workplace


  Ensure fair labour practices, redress past inequalities, enable people of different backgrounds to work together, ensure workforce is representative of the country's demographics, make provision for individuals with disabilities
• Negative impact of HIV/AIDS on businesses
• Types of gambling


  • To be provided
• The poor do not have money to spend on goods and services
• The difference in income levels between rich and poor people
• The negative impact of HIV/Aids on businesses
• Reduced productivity


  Of affected employees
• Increased absenteeism


  Because of medical appointments for doctor or clinic visits
• Increase in staff turnover


  For the business due to HIV related deaths
• Additional costs


  For businesses when they need to hire and train new employees
• Businesses face high levels of absenteeism


  Of employees who become ill or request to attend funerals
• Employees may experience low morale

  Because of sick colleagues
• Pyramid schemes


  Businesses that may potentially yield high revenues for people who invest their money in them
• Individuals at the top of the pyramid

  Receive large sums of money
• Illegal gambling


  Unlicensed businesses offer gambling to the public
• Illegal gambling activities


  Can take place in poor communities such as when people play with die (dices) on street corners for money, or when individuals frequent unlicensed casinos
• Money laundering


  The process by which unlawful profits from crimes are invested in valid businesses to cover up their wrongdoing