Type of business
Oil extraction can only take place where there is oil
Some businesses have to locate near a resource. For example, oil rigs have to be taken out to sea to an oil field, where they can drill.
There is no one best business location. Different types of business need different things from a location to be successful.
Businesses in the primary sector of industry are concerned with extracting raw materials or natural resources. They have to be near these resources. For example:
- oil rigs have to be taken out to sea to an oil field, where they can drill.
- a windfarm will only generate electricity in an exposed area with enough wind.
- a farm needs the right weather conditions for crops to grow.
Businesses in the secondary sector are involved in manufacturing. They need to find a location that balances their access to the raw materials they use with the markets they send their products to.
Businesses in the tertiary sector need to be in a location where customers can access the services they provide.