Business services are a broad category of non-financial business activities that support or enhance an organization’s operations and that do not produce a physical commodity. They include a wide range of functions such as marketing, accounting, human resources, logistics (including travel and facilities), waste handling and security.
There are two main groups of service businesses: those that cater to individual consumers and those that serve other organizations or businesses. For example, a carpet cleaning establishment will focus on meeting the needs of individual consumers, and a company that provides security personnel will target commercial establishments.
The value of the services provided by service businesses is usually determined by their market rather than by a fixed cost basis; customers will generally pay whatever they believe that the service is worth, so pricing is generally based on the perceived value of the service. This can be a good or bad thing depending on the business.
Those who work in business services often need to be highly skilled at their job duties because they frequently interact with people and are therefore required to communicate well. This is especially true in customer service, where people are likely to be very sensitive and should be treated with utmost respect.
A business service professional must also be knowledgeable and able to solve problems quickly so that they can remain productive and continue delivering a high level of customer satisfaction. This requires excellent technical skills and a strong understanding of how to properly use the technology that they are using.
Companies need a variety of business services professionals, from maintenance experts to pest exterminators. These professionals make sure that companies’ property is in working order and that their equipment is functioning correctly. They also provide emergency service when companies’ employees experience a problem.
In addition, some businesses need to hire real estate agents to help them find workspaces and to negotiate rental agreements. These services can help businesses save time and money while offering a more flexible workforce.
Another common service that many companies need is the delivery of essential supplies and products. This helps them save money and time by avoiding long, expensive trips to the store.
This service is especially important when the business is located far from its customers and in areas that are unreliable or difficult to access. These companies may hire couriers to deliver their products or supplies to remote locations.
Business services are an increasingly important part of the European economy, contributing 11% of GDP in 2012. This sector is underpinned by a number of factors including growth in affluence, increased leisure time and changing work force demographics.
In recent years, the industry has experienced major changes in its business model due to the rapid evolution of communication technologies and infrastructures. This has led to more and more companies outsourcing their business services to other providers who are able to adapt to a more flexible and responsive environment. This has created opportunities for startups and new business solutions that are innovative, efficient and sustainable.