Difference Between Public and Private Sector
Public sector is a state or a government managed forum/ body that undertakes and accomplishes services for the government and the citizens of the state/nation. It is the responsibility of the public sector to intervene if there is monopoly taken over by the private sector and the citizens are suffering. Lower class gets more burdened and needs assistance in which case the public sector steps in to provide services like public transport. If prices of public services increase, it means misery for the lower class. The public sector is operates by the taxes collected by the government.
Businesses that are classified under the private sector are governed by private individuals whose motive in making maximum profits no matter if it is at the expense of the citizens. Therefore it is called a kind of exploitation. However the private sector can provide the citizens with services that the public sector cannot provide. Sole ownership, partnership, a private limited company and a public limited company are the four types of companies that are present in the private sector. The ownership these companies depend on the capital invested by the people who contribute. As far as sole ownership and partnership business is concerned, the capital comes from the owner only unlike the private limited company and public limited company, where the ownership is decided through the ownership of shares.
The public sector is present to serve the citizens of the nation and profit is generally not their priority. The private sector firms exist by making profits. The public sector thrives on the money that is collected by the general public through their taxes and state loans. Private sector companies survive by the capital invested by individuals or share owners. The company then retains the income and a part of it is given as dividends to the share owners.