Differences between public and private sector

Differences between public and private sector

1. The public sector comprises all business enterprises belonging to, managed, and ran by government, for example, water, transportation, radio, television.

2.  The private sector is that component of the economy that is owned by private people, ­individuals or a private business.

 

3.Market forces of demand and supply decide prices and the distribution of resources.

4.  The private sector chooses what goods are produced, how, and for whom through the price system. It is largely in charge of distributing resources. It permits the progress of capital and labour to where they are most cost-effective.

5 Businesses established in the private sector are sole traders, partnerships, public and private liability companies, credit unions, and non-profit organisations.

6  In the private sector profit is the motivating power.

7.The public sector aims to adjust and lay down fair trading principles in the private sector. It aims to look after consumers in opposition to monopoly enterprises and wasteful competition. It makes sure certain goods are provided for consumers, e.g. roads.