The Standard Industrial Classification (SIC) codes are four-digit codes to classify different industries. The US government assigns these codes to business establishments to identify the sectors they are operating. The primary motive of this classification was to facilitate the process of data collection, analysis and to aid various federal and private agencies to encourage uniformity as well as comparability in the presentation of statistical data.
Established in the United States in 1937, the system asserts the economy into 11 divisions that undergo 83 two-digit groups division. It is then further classified into 416 three-digit industry groups. These groups undergo final segmentation to form 1,005 four-digit industries.
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– Simpler to read and understand
– It saves time spent on researching
– Quickly identify the target market
– Determine various aspects of industries
– Instantly improve the sales and revenue
– Less risk of missing out the potential leadsÂ
– Limited scope
– Difficult to determine the exact group
– This lead to the rise of NAICS code