Compare the private sector with the public sector.
pohnpei397 | Certified Educator
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.