Public sector:
- Includes everything that it is owned by the government. This is things like army, police force and most schools and hospitals.
- Public means that they are owned by the government for the benefit of everyone.
- Contains all businesses owned by private individuals.
- Private means that these businesses are run for the benefit of the owners.
- The main objective of the public sector is to provide a service and not to maximise profit. Whereas private sectors give priority to profits and may end the service if it is not profitable.
- Public sector strives to create employment, but private sectors main aim is to become efficient and cut costs (and this might include cut jobs).
- Public sector businesses usually locates in regions where there is under-development in order to create jobs and income for the local communities. But private sectors might not keep these things into consideration and will look for external economies of scale.
