Business services are the activities that support the operations, infrastructure and productivity of a business without delivering a physical product. These include marketing, consulting, logistics, shipping, waste management and administration. Almost every business in operation requires some form of these business support services.
One of the biggest service sectors, it contributes 11% to the EU GDP and is a key element for European competitiveness. While still underdeveloped and facing legal barriers, the sector has significant untapped growth potential. To stimulate the sector and make it more attractive to companies, new EU Internal Market legislation and policy actions are being drafted.
The main characteristics of business services are inseparability and customer involvement. These are a result of the fact that services are usually delivered simultaneously with their consumption, which can vary from person to person. The other major characteristic is that they cannot be stocked like goods, therefore they have to be produced and delivered each time they are required.
Unlike other industries, which focus on a single commodity, the business services industry is broad and has many specialized sub-sectors. Some of these include IT, financial, HR, marketing, advertising and consultancy services. These offer a variety of solutions for a company, including helping them to increase efficiency and become more competitive. As a result, it is essential for businesses to understand their needs and choose the best business services providers. This will ensure that they are able to meet the demands of their customers and achieve their strategic objectives.