Importance of Service Sector in Economy

What is the importance of service sector in economy? Transactions or economic activities will never stop since the discovery of money as a substitute for the barter system. Even now, the situation at the national level influences the process of transactions or economic activities carried out by individuals within it. Some of the benefits of economic activity in the service sector are owners that affect quite significant circumstances such as:

1. Increasing Per Capita National Income

Within a country, it is not only focused on the economic sector, because there are still various fields that affect income. However, the economic sector is considered to have the greatest and fastest potential to increase per capita income. For information that the way to get it is to find the average income of the population.

2. Creating Healthy Economic Competition

Transactions, sales, and economic activities will not be possible without competition, either directly or indirectly. Some of them may have their own techniques for promotion to the point of using occult means to sell. The more competitive, the economic actors will be motivated to keep the competition in healthy conditions.

3. Providing Creative and Innovative Opportunities in the Service Sector

There are so many forms of economic activity in the service sector such as tourism, transportation, beauty, and so on. Hand in hand with the benefits of economic activity in the service sector is to provide creative and innovative opportunities that can be made by yourself. In addition, the use of creativity will not be limited if it is adjusted to the needs and gap environment.

4. Distribute Economic Capability Equally

In fact, the benefits of economic activity are quite broad and are not confined to the service sector, but this field is considered more flexible. Indonesia still has remote areas and some of them are difficult to reach which is the cause of the uneven economy. The supply of services as a source and economic activity is considered the most suitable and suitable for leveling the economy.

5. Improving People’s Welfare Nationally

Often the scope of welfare is calculated through the ability or ownership of valuable items recorded per individual. The reason is that it is true that welfare depends on the ability of individuals or families to meet their needs. Some experts say that the moderately prosperous category is based on the same amount of income and expenses.

6. Achieving Association in the Economic Field

Then the benefit of economic activity in the service sector is to achieve unity in the economic sector which is vulnerable to threats. As it is known that economic activity has many competitors in the market because it has a lot of demand too. Now through services in the economic field will be able to prevent disintegration or even achieve a symbiosis of mutualism.

7. Making it easier for actors in economic activity

Continuing to discuss the benefits of making it easier for economic activity actors, which essentially include consumers, distributors, and producers. The three main actors in economic activity will certainly be greatly assisted by the presence of economic services. In addition, the forms of service work that can be selected can be made according to the needs or desires of economic actors.

8. Accelerating the Rate of Economic Growth

Previously it was also stated that the benefit of economic activity in the service sector is to increase income per capita. This will also affect and encourage economic growth in a country so that it can be stronger and more stable. In addition, when the community is able to carry out economic activities it will bring up growth results that are in line.

9. Improving the Quality of People’s Life

Next, the benefits of economic activity in the service sector are that it can improve the quality of life of the community, both from within and outside. This increase includes various things such as education, employment, health, welfare, and so on. These various things can be achieved if the unemployment rate decreases which causes the ability to live to be better.

10. Expanding Employment Fields

Finally, in discussing the benefits of economic activity in the service sector, of course, many people already know, namely expanding employment opportunities. The threat of machines replacing human jobs can have both bad and good impacts. The emergence of service jobs in the economic field can certainly be a gap to fill in irreplaceable human jobs.

That’s some information about the importance of service sector in economy, especially in the service sector which may often be invisible. However, it turns out that the benefits of economic activity in the service sector are the most and are not inferior to other activities. In addition, various forms of services that may be increasingly diverse will be unique because they are tailored to the needs.

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