Differences Between & Similar Products
Jan 12, 2012 by daniel
Differences between Public and Private Sector
Public sector generally comprises of the organizations that are being operated by a country’s government. For instance, government agencies such as state and federal offices are considered as public sector. It is essentially a kind of public body or public authority. In this regard, all federal institutions that are linked to government management, health care, prison and police services amongst many others make up the vast public sector.
In contrast, private sector comprises of companies that are private in nature. This means these companies do not have any links to the government. Private institutions include NGOs, partnerships, small businesses, charitable organizations, corporations and other kinds of entrepreneurships. Some of the precise examples are local businesses, retail stores and credit unions to mention a few.
As you have already seen there is a disparity in the definition of these two words. However, there are still more differences that can be noted. For instance, individuals in public sectors mainly aim to offer the public services and they are not contending against other institutions to gain profit. Conversely, private sectors normally have an aspiration of surpassing their competitors, hence maximizing their profits.
The management of public sectors is done using a huge chain of control. There is normally a set hierarchy and thus actions must be approved by the higher power at all times. Differently, private sectors generally run their businesses using corporate settings. Additionally, public sectors mostly stick to what the law states, whereas private sectors use the rules that are set by corporate owners and shareholders.
The final disparity between the two sectors is the benefactor of both the services and products offered. In public sectors, services provided are meant for consumption by everyone in the populace. In contrast, private sectors target the consuming individuals in the population who are supposed to purchase the services and goods so as to generate profits for the corporations.
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