Levels of Business Activity

All those businesses which are related to extraction of raw material from the earth such as mining, fishing, farming, and logging
Such activities are also known as Primary Sector businesses.
There is very little addition of value.
The Primary Sector makes up the largest part of Zimbabwe’s economy.
Zimbabwe’s economy is based on Agriculture which is part of the primary sector.
The primary sector provides essential raw materials to other sectors of the economy
For example fuel for Transport and Raw materials for manufacturing.
It provides food that is used to feed the personnel in each sector.
It also makes its own contribution to the Gross Domestic Product thus leading to an increase in the standards of living.
Some raw materials are exported to other countries thus earning essential foreign currency for Zimbabwe.

Pipeline under construction. Image credit MediaWiki

All businesses which manufacture and process the raw materials which can be used by the end consumers are known as Secondary Sector businesses.
These include building, construction, compute assembly, shoe factories, textile factories etc.
Examples of businesses in this industry include Astra Paints, Lobels Bread etc
The primary sector adds value to processed raw materials
It makes them usable by the end consumers or by other industries, for example, copper wires are used in manufacturing electronic and electrical equipment.
Finished goods can be exported to other countries thus earning foreign currency.
The Secondary industry increases Zimbabwe’s GDP and leads to an increase in the standards of living.
Exporting processed goods instead o raw materials minimises the possibility of imbalances in trade and thus lead to the development of Zimbabwe.

businesses which provide services and assist both the primary and secondary sector businesses can be classified as Tertiary sector businesses.
These include transportation, insurance, hospitals, educational institutes, showrooms etc
Examples include the University of Zimbabwe, Midlands State University etc.
The tertiary industry provides essential services to the other sectors thus leading to development.
Without Transport for examples goods would not be transported from the source to destination markets.
Warehouses provide storage and other services to the other sectors of the economy.
Advertising enables sellers to communicate with buyers.
Banking provides essential financial services.
Insurance provides essential functions such as indemnifying customers and businesses against incidental losses.
Communication services enable various entities within the economy to communicate with one another. Studies have shown a correlation between broadband (part of communication) usage and the development of a country (GDP).
Other services such as Hotels also play a crucial service by bringing in foreign currency into the country through for example tourism.

To access more topics go to the O Level Business Studies Notes Page.

Levels of Business Activity- Updated 2025