Types of Business Services
Business Services refer to those services, which are used by business enterprises to conduct their activities. They are necessary for the effective operation of businesses and comprise those connected with banking, transportation, warehousing, insurance, communication, etc. Business enterprises need various services from banks, insurance companies, etc., like from banks they want availability of funds; from insurance companies, they want their plant, machinery, goods, etc., to be insured; they need transport companies for transporting raw material; and finished goods, and telecom and postal services for being in touch with their vendors, suppliers and customers.
India is becoming more and more competitive, and it is challenging other nations in the service sector. Numerous foreign countries choose India as their hosting partner for commercial services; sometimes, they even want to open a branch office.
Types of Business Services
For acquiring assets, purchasing raw materials, etc., funds are needed, and necessary funds can be obtained from a bank. The problem of finance can be overcome with the help of banking services. Banks lend money and provide many services such as overdraft, cash credit facilities, etc. Commercial banks help exporters in collecting money from importers in case of foreign trade. It also helps promoters of companies to raise capital from the public. Savings of the people are mobilised and funds are available to businesses financing their capital and revenue expenditure with the help of banks.
Insurance is a contract that covers the loss anticipated to be caused by an unknown event among a number of people who are exposed to it and plan to protect themselves against it. It is a contract or agreement in which one party promises to pay an agreed amount of money to another party in exchange for consideration to make a loss, damage, or loss to anything of value in which the insured has a monetary interest as a consequence of some unpredictable occurrence.
Insurance is a type of risk management that is primarily used to protect against the risk of financial loss. Insurance is ideally described as the equitable transfer of a possible loss risk from one organisation to another in exchange for a reasonable fee. As a result, an insurance company is an association, corporation, or organisation that is in the business of paying any legitimate claims that may arise in exchange for a fee (known as premium). The agreement/contract is documented in writing and is referred to as ‘policy.’ The individual whose risk is insured is referred to as the ‘insured,’ and the company that covers the risk of loss is referred to as the insurer/assurance underwriter.
Transportation consists of freight services together with supporting and auxiliary services by all modes of transportation i.e., rail, road, air and sea for the movement of goods and international carriage of passengers. The hindrance of place is removed with the help of transportation as it makes sure that goods are available to the consumers from the place of production.
To keep up with the demands of our economy, we must improve our transportation infrastructure. We require improved road infrastructure. We have a few ports, which are also crowded. Both the government and industry must be proactive and should ensure proper operation of this service as a need for giving a lifeline to commercial services. Because of a lack of proper transportation, the agriculture and food sectors face massive losses.
When goods are held in stock to make them available as and when required, it is known as Warehousing. It helps businesses to overcome the problems of storage and makes goods available when needed and thus, helping in maintaining prices at a reasonable level. It also offers a wide range of services. They are in charge of inventory management, which involves providing the manufacturing departments with the appropriate number of commodities at the right times.
Storage has always been a critical component of economic progress. Initially, the warehouse was viewed as a static unit for maintaining and storing commodities in a scientific and systematic manner in order to preserve their original quality, worth, and utility.
5. Communication: Communication is defined as the process of exchanging messages between or among individuals in order to reach a common understanding. Communication is the most crucial trade support. It is also useful for customers to inquire about goods and services, how to place orders, or the advantages of services, or to file a complaint about a product or provide feedback on services.
An organisation must maintain constant contact with the outside world. There must be a flow of information and ideas. This is why efficient communication is the foundation of any successful business. A company must communicate with its workers, customers, buyers, suppliers, the government, and other stakeholders. To be effective, every communication service must be quick and affordable. Communication has been extremely successful in recent decades as a result of significant technical improvements. Indeed, the growth of the internet (and its communication capabilities) is the cause for the presence of a global economy.
Postal Services: The primary services that assist businesses are postal and telecommunications. The Indian Postal and Telegraph Department provides a variety of postal services throughout India. The country has been split into 22 postal circles in order to provide these services. These circles are in charge of overseeing the day-to-day operations of the different head post offices, sub-post offices, and branch post offices. Financial facilities, like the post office’s savings schemes, Public Provident Fund (PPF), Kisan Vikas Patra, etc., are provided through the postal service.
Telecom Services: The key to the country’s fast economic and social development is a world-class telecommunications infrastructure. It is in fact the backbone of all corporate activities. The notion of doing business across continents will remain a fantasy in today’s world if there is a lack of telecom infrastructure. Globally, there have been significant advancements in the convergence of the telecom, IT, consumer electronics, and media industries.
Recognizing the potential for improving quality of life and facilitating India’s ambition of becoming an IT superpower by 2025, the Government of India produced a new Telecom Policy Framework in 1999 and a Broadband Policy in 2004. The government plans to use this framework to deliver both universal services to all unserved regions and high-level services to fulfil the demands of the country’s economy.