Syllabus: Cambridge - IGCSE Business Studies
Module: 1.2 Classification of Businesses
Lesson: 1.2.1 Economic Sectors in Terms of Primary Secondary and Tertiary Sectors

Introduction

This topic, part of the Cambridge IGCSE Business Studies syllabus, explores how economic activity is grouped into primary, secondary and tertiary sectors. Understanding these classifications is foundational to building commercial awareness, and it supports wider workplace readiness by helping students connect classroom theory to the real-world structure of industry.

The Cambridge IGCSE expects learners to understand not only the characteristics of each sector but also their interdependence and changing significance in different economies. This aligns directly with Gatsby Benchmark 4 by linking curriculum content to real career contexts, and supports careers leads and SLT in demonstrating whole-school readiness provision.

Key Concepts

According to the Cambridge IGCSE Business Studies 0450 syllabus, learners must be able to:

• Define and describe the three sectors of industry:

  • Primary: Extraction of natural resources (e.g. farming, fishing, mining)

  • Secondary: Manufacturing and processing (e.g. car production, food processing)

  • Tertiary: Services provided to consumers and businesses (e.g. banking, retail, tourism)

• Understand the chain of production and how goods move from raw materials to end consumers.

• Identify the relative importance of each sector in different countries (developed vs developing economies).

• Explain reasons for sectoral change, including technological advancement, consumer demand shifts, and globalisation.

• Use real examples to classify industries and describe their role within an economy.

Real-World Relevance

Economic sectors are not just theoretical concepts—they shape how societies develop and how careers evolve.

Case example: The UK economy

• The UK has seen a long-term decline in primary sector employment due to automation and cheaper global alternatives.

• Secondary industries like car manufacturing still play a key role, but automation and offshoring have changed the labour landscape.

• The tertiary sector now dominates, accounting for around 80% of the UK’s GDP, driven by financial services, education, health, and e-commerce.

Global contrast: Ghana

• Ghana still has a significant proportion of its workforce in primary sector activities like cocoa farming and mining, though there’s increasing investment in secondary processing and tertiary tourism services.

Using real data and trends makes the classification more tangible. Students can examine job advertisements or company case studies (such as Tesco, JCB, or Google) to explore the blend of sectors within even a single organisation.

How It’s Assessed

In the Cambridge IGCSE examination, this topic is typically assessed through:

• Short-answer knowledge questions:

  • e.g. “Define the tertiary sector” or “Give two examples of primary sector businesses.”

• Data response and scenario-based questions:

  • Students may be given information about a business and asked to identify which sector it operates in or explain how its sector affects its operations.

• Longer 6–8 mark questions:

  • These often require evaluation, such as:

    • “Explain how changes in consumer demand might impact a business in the secondary sector.”

    • “Discuss the importance of each sector in a developed economy.”

Command words to teach: define, describe, explain, analyse, discuss.

Students should be taught to read questions carefully and structure answers using point-evidence-explanation, especially where marks are awarded for application and analysis.

Enterprise Skills Integration

This topic provides a natural gateway into core enterprise capabilities:

• Decision-Making & Problem-Solving:
  Students evaluate which sector a new product or service should target, using stakeholder needs and cost structures.

• Commercial Awareness:
  Understanding which sectors are growing or declining helps students build awareness of labour market trends and business challenges.

• Workplace Readiness:
  By exploring how businesses operate within their sector, learners grasp organisational roles, dependencies, and commercial structures—key to real-world confidence.

Enterprise Skills tools such as business model builders or chain of production roleplays from Skills Hub Futures can enhance engagement and understanding while mapping clearly to Gatsby Benchmark 4.

Careers Links

This topic aligns closely with Gatsby Benchmarks 4, 5 and 6, particularly:

• Benchmark 4: Linking classroom learning to careers via job role examples in each sector.

• Benchmark 5: Use of employer videos and case studies within Skills Hub to show real workplace functions across sectors.

• Benchmark 6: Virtual or simulated work experiences in manufacturing, services, or agriculture.

Career Pathways Examples:

• Primary: Environmental technician, agricultural economist

• Secondary: Civil engineer, production planner

• Tertiary: Retail manager, financial analyst, digital marketer

Skills Hub Futures includes careers sessions on “Understanding Business Models” and “Customer Focus”, helping students explore how roles exist and shift across economic sectors.

Teaching Notes

Teaching Tips:

• Begin with a blank whiteboard and ask students to brainstorm jobs. Categorise these into sectors to build intuitive understanding.

• Use local examples—have students research nearby employers and identify their sectors.

• Incorporate interactive activities:

  • Chain of production simulations

  • Sector sort card games

  • Data analysis of employment trends by sector

Common Misconceptions:

• Believing that businesses belong to only one sector (many operate across multiple).

• Assuming the tertiary sector is “better” or “more advanced” without context.

Extension Ideas:

• Invite a local employer from each sector to speak about their work and pathways into their role.

• Link to cross-curricular topics like sustainability in geography or automation in computing.

Assessment Prep:

• Practise command word response strategies using sample past questions.

• Include peer-marking sessions for longer answer questions to build confidence and improve structure.