Business sector explained

In economics, the business sector or corporate sector - sometimes popularly called simply "business" - is "the part of the economy made up by companies".[1] [2] It is a subset of the domestic economy,[3] excluding the economic activities of general government, private households, and non-profit organizations serving individuals.[4] The business sector is part of the private sector, but it differs in that the private sector includes all non-government activity, including non-profit organizations, while the business sector only includes business.

In the United States, the business sector accounted for about 78 percent of the value of gross domestic product (GDP) .[4] Kuwait and Tuvalu each had business sectors accounting for less than 40% of GDP .[5]

In systems of state capitalism, much of the business sector forms part of the public sector.[6] In mixed economies, state-owned enterprises may straddle any divide between public and business sectors, allowing analysts to use the concept of a "state-owned enterprise sector".[7]

The Oxford English Dictionary records the phrase "business sector" in the general sense from 1934.Word usage suggests that the concept of a "business sector" came into wider use after 1940.[8] Related terms in previous times included "merchant class" and "merchant caste".

See also

Notes and References

  1. Longman Business English Dictionary. Such a definition might include State-owned enterprises - compare:Book: Freeman . John R. . Democracy and Markets: The Politics of Mixed Economies . 1989 . registration . Cornell studies in political economy, ISSN 2472-1433 . Ithaca . Cornell University Press . 1989 . 117 . 9780801496011 . 12 June 2019 . In addition, party activists recognize the instrumental value of state-owned enterprise, and in some instances they are directly involved in supervising the operation of the state business sector..
  2. Compare: - "that part of the economy which is related to (a particular) business".
  3. But compare Book: Keese. Mark. Salou. Gérard. Richardson. Pete. The measurement of output and factors of production for the business sector in OECD countries: the OECD business sector database. OECD Department of Economics and Statistics working papers. 1991. 95-101. 99. Organisation for Economic Co-operation and Development. 1991. i. 2015-06-07. [...] recent work of the OECD Economics and Statistics Department to construct an international Business Sector Data Base (BSDB) for use in a wide variety of analyses of production and supply issues [...]..
  4. Web site: BLS Information . February 28, 2008 . Glossary . U.S. Bureau of Labor Statistics Division of Information Services . 2009-05-05.
  5. Book: 1: Overview: Opportunities and challenges for Myanmar. OECD Development Pathways Multi-dimensional Review of Myanmar. 23 June 2016. 3: From Analysis to Action. Paris. OECD Publishing. 2016. 29. 9789264256545. 2017-12-27. The countries that have general government revenue more than 60% of GDP are Kiribati, Kuwait, Lesotho, Micronesia and Tuvalu. Source: IMF (2015), World Economic Outlook (database), International Monetary Fund..
  6. Book: Dieterle . David A. . Economics: The Definitive Encyclopedia from Theory to Practice . 27 March 2017 . ABC-CLIO . 2017 . 297–298 . 9780313397080 . 19 October 2021 . Modern state capitalism involves businesses that are owned or backed by the government with the behavior of a private-sector multi-national company. Today's modern state business develops into a full-fledged business model [...] Regardless of the business sector that the state-powned business is operating, if the government backing the business is not stable, the likelihood of a stable business greatly lessens..
  7. Book: State-Owned Enterprise Sector Remains Large Despite Increasing Divestiture . Bureaucrats in Business: The Economics and Politics of Government Ownership . World Bank policy research report: International Bank for Reconstruction and Development, volume 4 . 1995 . Oxford . World Bank Publications . 1995 . 25ff . 9780195211061 . 19 October 2021.
  8. https://books.google.com/ngrams/graph?content=business+sector&year_start=1800&year_end=2000&corpus=15&smoothing=3&share=&direct_url=t1%3B%2Cbusiness%20sector%3B%2Cc0 Google Ngram Viewer

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