What Are Business Services?
Business services are intangible, but they offer businesses expertise, convenience, and luxury. As a result, they help businesses run their businesses more effectively. In other words, they are economic services that businesses provide, not consume. Read on to learn about some of the most important business services. There are many examples. Here are some of the most popular ones. And remember that they’re all important. So, how do you define them? Here are three ways.
They are a subset of economic services
The activities of the services division are broadly classified into physical, intellectual, and aesthetic. Physical activities are those performed with or for objects. Intellectual activities involve providing education, training, or knowledge. Aesthetic activities include art shows, museums, and theatrical performances. Other types of experiences occur through businesses, such as amusement parks and zoos. These activities are often cyclical in nature, but their economic impact is significant.
They are intangible
Intangible goods cannot be physically stored and are not sold. On the other hand, business services cannot be stored. The supply and demand are intrinsically interconnected. Business services are rendered to customers based on their specific requirements. Since services are not able to be physically seen or touched, they cannot be sold or stored in the same manner as tangible goods. Hence, they are intangible. Hence, their performance is dependent on the demands of consumers.
They face legal barriers
Business services are a sector with huge untapped potential in the EU, but persisting legal barriers and low productivity are hampering growth. EU internal market policy actions and legislation aim to reduce barriers and encourage competition in this sector. The Services Directive, for instance, allows business service providers to set up shop in another EU country and offer their services across borders. However, the Directive doesn’t cover private security, temporary work agency, or notarial services.