What Is An Industry?

The word, industry, is used to describe a collection of enterprises that are involved in the production of a certain kind of related good or service. It is like a sector and it is basically a way to classify all the production taking place in the economy into identical and smaller categories of industries like for example agriculture industry, cement industry, telecom industry and so on. There are firms that are involved in many types of business but when we say industry, we divide the firms based on the primary activity that they perform and the activity that gets them the most revenue. So in short it is a group of companies that is involved primarily in the production and selling of a comparable type of good.

An industry can be considered to be a classification of similar businesses and their employees together. The firms in an industry provide similar products and services to a similar market of consumers. An industry can be considered as a category into which firms can be classified. Each firm is a member of at least one or more category or industry. Many firms can be classified into two or more industries. All the industries in the market are aggregated into a market. Example of industries include; food and beverage industry, fast food industry etc.

Industry is basically defined as manufacturing of goods or services within a certain category of these goods or services. It is a broad term for economic production, However, it is mostly related to manufacturing of raw materials into goods and services.

There are four main industrial economic sectors which are as follows:
- Primary Sector: This sector concerns raw material extraction such as farming.

- Secondary Sector: This involves  refinement of raw material and manufacturing.

- Tertiary Sector: This sector deals with providing services to customers such as medical.

- Quaternary Sector: This sector deals with technological research and development , which includes computer programming etc.