Private sector
Encyclopedia
In economics
, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit
, and is not controlled by the state
. By contrast, enterprises that are part of the state are part of the public sector
; private, non-profit organizations are regarded as part of the voluntary sector
.
The main types of businesses in the private sector are:
In countries where the private sector is regulated or even forbidden, some types of private business continue to operate within them.
, the public sector
employs most of the workers.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
, and is not controlled by the state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
. By contrast, enterprises that are part of the state are part of the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
; private, non-profit organizations are regarded as part of the voluntary sector
Voluntary sector
The voluntary sector or community sector is the sphere of social activity undertaken by organizations that are for non-profit and non-governmental. This sector is also called the third sector, in reference to the public sector and the private sector...
.
Legal status
A variety of legal structures exist for private sector business organizations, depending on the jurisdiction in which they have their legal domicile. Individuals can conduct business without necessarily being part of any organization.The main types of businesses in the private sector are:
- Sole proprietor or sole trader
- Partnership, either limited or unlimited liability
- Private Limited Company or LTD-limited liability, with private shares
- Public Limited Company – shares are open to the public. Two examples are:
- Franchise – business owner pays a corporation to use their name, receives spec for the business
- Workers cooperative – all workers have equal pay, and make joint business decisions
In countries where the private sector is regulated or even forbidden, some types of private business continue to operate within them.
Employment
The private sector employs the majority of the workforce in some countries. However, in some countries such as the People's Republic of ChinaPeople's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
employs most of the workers.
Statistical organizations
- EurostatEurostatEurostat is a Directorate-General of the European Commission located in Luxembourg. Its main responsibilities are to provide the European Union with statistical information at European level and to promote the integration of statistical methods across the Member States of the European Union,...
- United NationsUnited NationsThe United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
Statistics Division http://unstats.un.org - UNESCOUNESCOThe United Nations Educational, Scientific and Cultural Organization is a specialized agency of the United Nations...
Institute for Statistics http://www.uis.unesco.org - OECD Statistics Division http://www.oecd.org/statistics
- PARIS21PARIS21Established in November 1999 in response to the UN Economic and Social Council resolution on the goals of the UN Conference on Development, the PARIS21 consortium was launched to act as a catalyst for promoting a culture of evidence-based policymaking and monitoring in all countries, and especially...
http://www.paris21.org - International Association for Official Statistics (IAOS) http://www.stats.govt.nz/iaos/, a section of the ISIInternational Statistical InstituteThe International Statistical Institute is a professional association of statisticians. The Institut International de Statistique or International Statistical Institute was founded in 1885 although there had been international congresses from 1853.. The Institute publishes a variety of books and...
http://isi.cbs.nl/ - Worldwide statistical sources
See also
- Free enterpriseFree enterprise-Transport:* Free Enterprise I, a ferry in service with European Ferries between 1962 and 1980.* Free Enterprise II, a ferry in service with European Ferries between 1965 and 1982....
- Private enterprise
- Private lawPrivate lawPrivate law is that part of a civil law legal system which is part of the jus commune that involves relationships between individuals, such as the law of contracts or torts, as it is called in the common law, and the law of obligations as it is called in civilian legal systems...
- Public economics
- Company law