industry ilustration

Definition of Industry: Classification, Types and Industrial Examples

Industry is a business, process or activity of processing raw materials, either raw or semi-finished so that they become goods of economic value that are better and benefit the community.

In Wikipedia, the term industry is identified with all human economic activities that manage raw or raw goods into semi-finished goods and finished goods.

From the above explanation, industry can be concluded broadly namely manufacturing activities involving all human activities in the economic field which are productive and not consumptive.

Industrial Classification

In general, the more advanced the level of industrial development in a country or region, the more the number and kinds of industries, and the more complex the nature of the activity and business will be.

Classification or classification of industries also differ, yes, but basically the classification of industries is based on criteria that is based on raw materials, labor, markets, capital or the type of technology used.

Apart from these factors, the development and economic growth of a country also determine the country’s industrial diversity. The greater and more complex the community’s needs that must be met, the more diverse the types of industry as well.

The industry classifications can be classified according to their respective criteria, which are as follows.

1. Industrial classification based on raw materials

Each industry requires different raw materials, depending on what will be produced from the industrial process.

a. Extractive Industries, namely raw materials obtained directly from nature

b. Non-extractive industries, namely industries that process further results from other industries.

c. Facilitative Industry, namely industries that sell services for the needs of others.

2. Industrial Classification based on labor

Based on the number of workers employed, industries can be divided into the following:

a. Home industry, namely industries that only employ less than 4 people.

b. Small industries, namely industries that have a workforce of around 5 to 19 people.

c. Medium industry, namely industries that employ workers of around 20 to 99 people.

d. Large industries, namely industries that employ a workforce of more than 100 people

3. Industrial Classification based on the production produced

Based on its production, industries can be classified into:

a. Primary industry, namely industries that produce goods that are not required further processing.

b. Secondary industries, namely industries that produce goods that require further processing before use.

c. Tertiary industry, namely industry whose results are not in the form of goods that can be enjoyed or used directly or indirectly but in the form of services that can facilitate or help the needs of the community.

4. Industrial classification based on raw materials

Based on the raw materials used by an industry, it can be divided into

a. Agricultural industry, namely the industry that processes raw materials obtained from the results of these agricultural activities.

b. The mining industry, namely the industry that processes raw materials derived from mining.

c. Service Industry, namely industries that process services that can simplify and lighten the burden on society but are profitable.

Those are the 4 types of industries and the types of industries and their explanation. If you have other questions that you want to ask, don’t hesitate to ask it in the comments column. thank you!

Leave a comment

Your email address will not be published. Required fields are marked *

× Ada yang bisa saya bantu?