Difference between Public Sector and Private Sector
We have studied about many companies that produce several products in the public and private sectors. Several countries have adopted privatization as the public sector has taken aback. For better results, both the private sector and the public sector have to work hand in hand. They have to balance out tasks and work as partners. In order to develop the country, both these sectors are required to work simultaneously. It is interesting to note that there is always a competition going on in between these sectors. Therefore, it is essential for them to understand that both are the fundamental sources of growth and development of the country. Now, what do the private sector and public sector mean? And what are the significant contrasting points among them? Well, without further ado, let us begin by knowing the primary meanings of these terms.
The public sector is the sector which includes both public companies and services. In other words, the public sector is the sector that is under government's control. The public sector includes agencies, enterprises, banks, companies, etc., that are controlled by the government. Some examples of the public sector include infrastructure, sewers, public transit, healthcare, goods, services, etc. The public sector is made of three parts, i.e., the judiciary, legislative, and executive. These three segments combine and make the private sector. One of the major aims of the public sector is to have a balance between economy and wealth. The public sector is under the state control. More or less, the companies and agencies under the public sector are owned by the state. Now, let us look at some contrasting points between these sectors.
The private sector is defined as the sector wherein the economy is controlled by private groups. In layman's terms, a private sector is the sector that is not under the control of the state. Private sectors are run by companies yielding profits. The private sector can also be called as the citizen sector. Examples of the private sector are ICICI Bank, ITC Limited, HDFC Bank, etc. Apart from the banks, the proprietors, businessmen, accountants, SMEs, etc., are some other examples of the private sector. The major objective of the private sector is to earn maximum profits and have sole ownership or control. The private banks have better management systems, due to which they are able to yield more profits. Some of the private companies include Vitol, Koch Industries, Huawei, etc.
So, these are some of the contrasting points between the private and public sectors. There are certain types of private and public sectors. So, let us discuss them in detail.
Types of Public Sector Enterprises
Types of Private Sector Enterprises
All these three have many legal differences between them.
So, these are the major types of private sector and public sector enterprises. Both these sectors work hand in hand to economically develop the nation. The major difference between them is government control, i.e., the public sector is fully under the control of the government/ state, unlike the private sector. Thus, both public and private sectors are the fundamental sources of building the economy of the country.