Private and Public Sector Organisations

Private sector:

• 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)

Public sector:

• In the public sector, businesses and other organisations are owned and run on behalf of the public, either by the government itself or by organisations that are funded by and report to the government

• Public sector businesses are not generally run ‘for profit’, but exist to provide goods and services to the public using public funds

Examples of companies/businesses:

• A relatively small number of companies are owned or controlled by the government

  • RBS(nationalised)

  • Network Rail

Examples of organisations:

• Many organisations that provide goods and services which are owned and operated by public bodies

• Funded by central and local government, but may still levy charges for some services

  • NHS