PUBLIC AND PRIVATE SECTORS

Public sector refers to:

·         Government-owned organizations

·         Government-provided services

The public sector (the state sector) is the part of the economy composed of both public services and public enterprises. Public sectors include public goods and governmental services such as the military, law enforcement, infrastructure (public roads, bridges, tunnels, water supply, sewers, electrical grids, telecommunications, etc.), public education, along with health care and those working for the government itself, such as elected officials.

Private sector refers to:

·         Organizations that are not government owned, and

·         The goods and services provided by organizations outside of the government

In the private sector, businesses are operated and owned by private individuals and companies. Private sector businesses are generally run “for profit” – to earn returns for the business owners (e.g. shareholders).