What Industries Are Small Businesses In?

KEY TAKEAWAYS

• An industry is a group of companies that compete with one another to sell similar products. There are two broad types of industries, or sectors:

  1. The goods-producing sector includes all businesses that produce tangible goods.
  2. The service-producing sector includes all businesses that provide services but don't make tangible goods.
• The largest areas of the goods-producing sector are construction and manufacturing. Construction businesses are often started by skilled workers, such as electricians, painters, plumbers, and home builders. These businesses tend to be small and generally focused on local projects. Though manufacturing is primarily the domain of large businesses, there are exceptions.
• Many small businesses in the service-producing sector are retailers - they buy goods from other firms and resell them to consumers, in stores, by phone, through direct mailings, or over the Internet. Other small business owners in this sector are wholesalers - they sell products to businesses that buy them for resale or for company use. A high proportion of small businesses in this sector provide professional, business, or personal services.