Compare the private sector with the public sector.

Asked on by chevy27

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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There are many points of distinction between the private sector and the public sector.  A few important differences are:

  • Private sector companies are owned and controlled by private individuals.  Public sector entities are owned and controlled by the government.  
  • Private sector companies are trying to make a profit while public sector entities are often non-profit.  The public sector is typically trying to provide services in the way the government wants them to be delivered.  
  • Finally, the private sector is generally said to be more efficient because its firms are exposed to constant competition for market share.  They must be as efficient as possible to make a profit and remain in business.  Public sector entities do not feel these pressures to the same extent.

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