Business services are services provided by businesses. These services are a continuum between the categories of commodities and services, and they are crucial to economic growth. While some services are similar to commodities, they differ in the inhomogeneity and nontransferability of their value. As such, they are not exchangeable.
Business services are a continuum between a service and a commodity
Business services are a range of products and services that businesses provide as part of their operations. They can be offered remotely or in person and may include marketing, advertising, logistics, travel, staffing, administration, and more. These products and services provide value to consumers and are often non-tangible.
They are critical to the economy’s growth
The services sector is important to the growth of an economy. Without services, a business can’t function. Business services are the goods and services provided by businesses for other businesses. They perform tasks that businesses don’t have the time or resources to do themselves. Many countries rely heavily on the service sector as a major contributor to their GDP. In fact, most low-income countries owe at least half of their growth to this sector.
They are growing in emerging markets
The economic development of emerging markets requires companies to expand capacity and capability in order to meet customer needs. One of the best ways to do that is by investing in the growth of small businesses. According to the World Bank, about 400 million small businesses operate in developing countries. They contribute 40 percent of GDP and 60 percent of jobs.