What is tertiary economic activity, you ask? This is a very good question and in fact it has been bothering me for quite some time now. I have been studying and working in the corporate sector in order to have a clear view of what is tertiary economic activity and how it can help companies in running their business profitably. I have also studied and worked in the government sector and there are many things that I learned from both of these sources.
I would like to discuss some of the topics that I have been studying in order to help you know what is tertiary economic activity. The first topic that I would like to discuss is the concept of a venture capital firm. A venture capital firm is a group of financial investors that are willing to finance a company as long as there is sufficient amount of collateral. The venture capitalists will use their financial expertise to evaluate the worthiness of a business before they finance it and this could even involve them in monitoring the business process and its performance. I have heard about some venture capitalists who do not necessarily want to fund a particular business, but they may be able to help if a company is in distress or needs to raise funds.
Another topic that I would like to talk about is the idea of in-house research. Research is an integral part of every business and when that research is done properly, companies can gain much benefit from it. Unfortunately, there are times when companies cannot conduct their own research properly and for this reason they look for outside assistance. I also learned that in certain circumstances, there are companies who assist companies with all their research work. These companies are termed as outsourcers and there are usually very low minimum requirements for the outsource services. Outsourcing is the concept that I am trying to bring into focus and I would like to explore how this concept can help companies to what is called “tertiary” economic activity.
Tertiary economic activity is that which is more sophisticated and requires specialized skills and knowledge. For example, if a company wants to become a paint contractor then they should be aware of all the state and federal requirements for becoming one. They should have all the requisite licenses and the skills required and should be aware of all types of consumables that they need to know how to use in the process. These are just a few examples of what is tertiary economic activity. There are many other activities that fall into this category such as accounting, legal transcription, web design, online education, customer service, medical transcription, government compliance, and even legal transcription. These are just some of the examples but I believe that you get the picture.
Companies sometimes get into trouble when they attempt to do everything themselves. If a company tries to meet all of their legal obligations, meet all of their payroll obligations, create a product that conforms to local ordinances and regulations and perform all of the things that companies are supposed to do then they may not be in a position to call themselves “tertiary economic entities.” This may not make sense to you or even to most business . . . . . . people but it is the truth. The law has changed radically over the years so the new definition will have to be altered to be able to stay on the right side of the law.
So what is tertiary economic activity? It is any activity that falls under the purview of what is tertiary economic entities. This includes all of the above as well as a host of other things that may be considered “fringe” economics. Please consider this in 2021.