Business services are a distinct category of service industries that support businesses, both large and small. They offer a wide range of activities, from consulting to accounting and transportation to cleaning. These businesses do not produce a product, and their value is intangible.
They are a crucial sector of the European economy, contributing to over 11% of EU GDP. They are an essential component of competitiveness in a complex and digitalised world, with new combinations of goods and services being created at a rapid pace.
Their key function is to enhance and harmonise the efficiency of a firm’s processes by supporting and integrating them. This involves enhancing the quality and the customer experience, while ensuring cost effectiveness and improving profitability.
Companies in this sector employ a wide variety of people, both permanent and contractual. Their employees are generally skilled and experienced in their fields. In addition to their technical expertise, they possess a strong understanding of the business context in which they work and the needs of the business.
These professionals have an excellent reputation amongst customers, enabling them to build relationships of trust and mutual respect. They also understand the specific requirements of their customers and are able to develop and deliver innovative solutions.
The service industry is driven by globalisation and the emergence of new communication technologies and infrastructures that enable companies to reach customers anywhere in the world. As such, the market for this sector is highly dynamic.
This is a sector that has a lot to offer, and it’s one where the future is bright. Its growth is largely determined by technology, digitalization, and the development of startups with ideas that are innovative, flexible, and sustainable.
It’s vital to have an in-depth knowledge of the market where you want your business to operate, as this will determine what kind of services you can offer your clients. In addition, you should always be prepared to make changes based on your clients’ needs and expectations.
Depending on the type of business you have, you will need to create a unique and compelling brand that will stand out from the competition. This will require developing an effective marketing strategy, as well as having a solid business plan in place to ensure that you are successful.
There are three main types of businesses that sell services: business-to-business (B2B), social, and business-to-consumer (B2C). B2B service providers often help other companies achieve a goal by offering their professional skills for a fixed or hourly rate.
Social service companies provide assistance to communities and other organizations through charitable activities. They may also raise funds through sales transactions to further their efforts.
They often have a large and dedicated staff and are highly efficient. These businesses typically offer a range of services, including childcare and health care.
This category of business is growing rapidly in the EU and worldwide. The sector faces relatively low average productivity and persisting legal barriers, but EU Internal Market legislation and policy actions aim to stimulate its growth. The European Commission has established a High Level Group on Business Services to assess their untapped potential and propose new measures.