Business services are activities that benefit companies but don’t involve supplying physical products. They’re a large portion of the commercial world, and most companies rely on them for marketing, production, cost, and other purposes. Some examples of business services include information technology, shipping and logistics, waste handling, staffing services, and consulting.
Another important characteristic of business services is that they are simultaneous, meaning that they are consumed at the same time as they are being provided. This makes them different from goods, which must be stored for consumption later and is a good example of an intangible product. The implication of this is that businesses must continuously provide new services in order to keep up with consumer demands and to remain competitive.
An important part of this is ensuring that workplace safety measures are implemented and that employees are trained to work in their chosen profession. For example, a company that provides a business service of insurance for workers may need to train their employees in how to avoid risks and dangers in their jobs.
It is also worth mentioning that there is significant untapped growth potential for business services in the EU. Some barriers are present, such as the relatively low average productivity level and persisting legal hurdles to cross-border provision. However, the EU’s Internal Market legislation and policy actions aim to remove these barriers and stimulate competitiveness in this vital sector.