Differences Between Public and Private Sectors Essay

Words: 1452
Pages: 6

The Differences between
Public Sector and Private Sector


Robyn Z. Abdusamad

Dr. Deborah LeBlanc
PAD 620 – Research Paper
August 23, 2010

The Differences between
Public Sector and Private Sector


When we examine public sector versus private sector, plenty of differences come to mind. In defining each, we learn a private sector in an economy consist of all businesses and firms owned by ordinary members of the general public. It also consists of all the private households in which people live. The public sector in an economy is owned and controlled by a government. It consist of government businesses and firms and goods and services provided by the government such as the national health service, state
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Therefore, the services tend to be those considered very important to modern life that for moral reasons their universal provision is usually guaranteed, and they are associated with fundamental human rights. Helping others with a specific need or want is their way of defining a service. An example of a service which is not generally considered an essential public service is hairdressing. As for the private sector, it is mostly the consuming public who utilizes the goods and services that they offer in exchange for profit. A private sector is not controlled by the state. There are various legal structures that exist for private sector business organizations, depending on the jurisdiction in which they have their legal residence. Individuals can conduct business without necessarily being part of any organization. According to Burger and Stare (2010), “The challenge remains how to simultaneously boost employment and efficiency in private services, while curbing the employment in public services without jeopardizing their performance. Exploiting the innovation potential in private and public services as well as the interfaces between the two may contribute to solving the problem.” In conclusion, most studies show there is a small amount of evidence that the participants have sufficient knowledge of real public-private