Business services are actions/activities that help businesses but don’t always produce a tangible product. They are used by companies for marketing, production, cost and convenience purposes – particularly by larger firms that are required to respond quickly to demands.
Business-to-business service providers assist customers in achieving a goal that they would not accomplish independently due to a lack of expertise, training or resources. These providers typically charge a flat rate or hourly fee to deliver their services.
Professional service providers provide services to businesses ranging from legal advice to accounting. These providers also provide information technology (IT) support, which aligns IT assets with business goals and supports the ability of a company to be profitable.
Social services benefit society and are funded through taxes and charitable organizations, not through direct sales, but they can raise funds from sales transactions to enhance their efforts. They often work in conjunction with other service providers, including insurance companies and consulting firms.
The business services sector is a significant driver of GDP growth and economic output worldwide, according to Statista. It represents a major sector for innovation and development, with startups emerging across the globe offering innovative, flexible, and sustainable business solutions.
Despite their growing importance, there is still considerable untapped growth potential in business services. The EU has adopted policy actions that aim at stimulating competition and removing remaining barriers to market entry and growth, such as the EU Services DirectiveEN*.
As businesses seek to reduce costs, improve productivity and grow, we see a wide opportunity for TPG to deploy our operational capabilities and sector insights to the business services sector. We offer support and investment to businesses in this area, leveraging our deep industry knowledge and cross-industry expertise to help drive growth and achieve profitability.