Business services are activities that benefit companies without supplying them with physical products. Whether they’re marketing, production, safety or cost-saving services, these activities are important for businesses of all sizes. They’re also vital to the success of the global economy.
The Business services sector represents a significant share of the European Union (EU) economy and contributes 11% to its GDP. However, it faces many challenges. These include low productivity and persisting legal barriers to cross-border provision of business services. EU Internal Market legislation and policy actions are designed to remove these barriers and stimulate growth in the sector.
Some examples of business services are training services, logistics and shipping, and third-party fulfillment for eCommerce. Generally, business services involve work performed by people who are not employed by the company receiving them. People can offer these services in return for payment, either by an hourly rate or a fixed price. They can also be offered to the public or provided internally.
Many businesses rely on business-to-business, or B2B, service providers to support their operational processes. These companies pay a flat or hourly fee for these services, which they use to reduce costs or increase productivity. For example, an architectural firm might hire a consultant to explain the purpose of a new building to its client. This helps the firm communicate its vision and make the project more successful. Similarly, a client may use an accounting firm to help with budgeting and tax preparation.
Another common type of business service is maintenance services, which are provided by professionals who repair or maintain equipment. These professionals are able to troubleshoot issues with computers and other technology quickly, so that employees can stay productive. Maintenance services can also include animal control and pest extermination. Many companies rely on these services to ensure the health and safety of their workplaces.
Management consulting firms provide advice to companies on how to run their operations more efficiently. They can also help them implement new technology or develop a strategy for expansion. Some management consulting firms specialize in certain areas, such as human resources or finance.
Other types of business services include telecommunications, insurance, and transportation. These services are important for the success of any enterprise, as they enable communication and access to information. Telecommunications services can be provided through phones, email, and other online platforms. Insurance services are provided by a variety of companies, from small, local agencies to large national companies. Transportation services, such as taxis and freight companies, provide a way for businesses to transport their goods.
Some consumers will choose to cut back on certain business services during difficult economic times. For instance, a consumer who previously hired a dog walker may now walk their own pet instead. This is because consumers tend to view products as necessities and services as optional extras. In addition, a consumer who has trouble with an online transaction may abandon the process and switch to a competitor.