Business services are the non-financial business activities that a company performs. They include many different kinds of services, ranging from administrative and marketing to transportation and facilities management.
They are an important part of the European economy, contributing around 11% of GDP. In particular, they help to make the European manufacturing sector more competitive.
The industry also includes a range of professional services such as legal, employment and facility management. These services are usually provided directly to customers, but they can also be offered through commercial businesses.
These services are often provided by small and medium-sized enterprises, which often have limited resources and therefore need to outsource some of their work to other firms. They can also be provided by larger companies that need to outsource a variety of tasks but that are not otherwise well suited for their own internal teams.
Examples of services that are commonly offered by companies include insurance, real estate and utility services. Most organizations need to maintain their properties and offices in order to function properly. In some cases, they prefer to rent space instead of owning it.
In these situations, they hire real estate agents and firms to find workspaces that meet their needs. They may also negotiate rental agreements and handle landscaping services.
Another service that is commonly offered by organizations is training and development. These services are provided to employees to improve their skills and enhance their ability to perform at work. These can include skills like customer service or leadership.
These can be provided in the form of workshops, seminars or coaching sessions. Some companies even provide online training programs to help their employees learn new skills quickly and cost-effectively.
The value of these intangible services is often not immediately apparent, and it is hard for consumers to measure their worth. However, they can have a significant impact on the quality of service delivered to them.
Business services are a relatively large and fast-growing sector of the European economy. They face persistent barriers to entry and a low average productivity, but legislation and policy measures are under way to address these obstacles.
For example, the EU’s Services Directive allows business service providers to operate across borders. It is designed to boost the competitiveness of the sector in the EU, as it removes legal obstacles and encourages more open competition.
This Directive also aims to stimulate growth by making it easier for new businesses to start up. In addition, it enables businesses to expand their operations by relocating or expanding to other EU countries.
One of the reasons that business services are so valuable is because they allow a company to focus on its strategic-based internal goals while outsourcing some of the labor that does not fall within its own expertise.
This approach can lead to better and faster decision making. It also helps to ensure that the work is done as efficiently and effectively as possible. This is a crucial component to ensuring that a company’s profits are maximized.