Difference between public sector and private sector of an economy with exmpes
Answers
Private Sector
The private sector is usually composed of organizations that are privately owned and not part of the government. These usually includes corporations (both profit and non-profit) and partnerships.
An easier way to think of the private sector is by thinking of organizations that are not owned or operated by the government. For example, retail stores, credit unions, and local businesses will operate in the private sector.
public sector
The public sector is usually composed of organizations that are owned and operated by the government. This includes federal, provincial, state, or municipal governments, depending on where you live. Privacy legislation usually calls organizations in the public sector a public body or a public authority.
Some examples of public bodies in Canada and the United Kingdom are educational bodies, health care bodies, police and prison services, and local and central government bodies and their departments.
The following are the major differences between public sector and private sector:
1.Public Sector is a part of the country’s economy where the control and maintenance are in the hands of Government. If we talk about Private Sector, it is owned and managed by the private individuals and corporations.
The aim of the public sector is to serve people, but private sector enterprises are established with the profit motive.
In the public sector, the government has full control over the organisations. Conversely, Private Sector companies enjoy less government interference.
The employees of the public sector have the security of the job along with that they are given the benefits of allowances, perquisites, and retirement like gratuity, pension, superannuation fund, etc. which are absent in the case of the private sector.
In the private sector working environment is quite competitive which is missing in the public sector because they are not established to meet commercial objectives.