Public Sector Private Sector

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Public Sector Private Sector
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Private sector banks can be defined as banking institutions where the private equity holders hold the majority of the shares. In contrast, public sector banks (also called government) can be defined as banking institutions where the government owns most of the stake.
Public Sector encompasses the companies, enterprises, or businesses wherein the Government is the owner of the business by way of a majority shareholding in the business. These businesses are controlled, managed, and operated by the Government.
Companies owned, controlled, managed, and operated by Government/Government Bodies come under the public sector.
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Private Sector includes those companies, enterprises, or businesses that are owned by Private Individuals or Private Companies. The companies in the Private Sector are controlled, managed and operated by Private Individuals/Private Entities.
Companies owned, controlled, managed, and operated by Private Companies/Private Individuals come under the private sector.
Companies such as National Thermal Power Corporation, Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, State Bank of India, National Highway Authority Limited are an example of public sector companies operating in power, Oil & Gas, Banking, Roads sectors in India.
There are numerous examples of companies operating in the private sector in India. Reliance Industries Limited, HDFC Limited, HDFC Bank, ICICI Bank are a few examples of private sector companies in an Indian context.
Here we provide you with the top 11 differences between Public Sector vs Private Sector.
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The key differences between the Public Sector vs Private Sector are as follows –
Let’s now look at the head-to-head difference between Public Sector vs Private Sector.
The public sector vs private sector is differentiated by the nature of the ownership and their purpose of existence. The businesses operating in both the public and private sectors are critical to the economy of any country and co-exist in the economy. There are certain industries wherein it makes sense for the Government to take ownership and manage the businesses in that industry. Industries like defense wherein many things are sensitive from the national security point of view, are owned and managed by the Government. The private sector makes up a large part of the overall economy of any country, and of late, they have been participating in almost all businesses/industries at multiple levels of the value chain Value Chain Value chain (VC) refers to the sequence of activities and processes a business undertakes to add value to its product or service at every stage from its inception to delivery. read more .
This has been a guide to the Public Sector vs Private Sector. Here we discuss the top difference between Public Sector and Private Sector along with infographics and comparison tables. You may also have a look at the following articles on Corporate Finance –
I learnt a lot about public and private sector.
Briant explanation thanks very much
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Public Sector refers to the part of the Country’s overall economy which is controlled by the Government or various Government bodies.
The private Sector refers to the part of the Country’s overall economy which is controlled by Individuals or Private Companies.
Public sector companies are owned and managed by Government/Ministries/State Govt./Govt. Bodies
Private sector companies are owned and managed by Private Individuals and Private Companies.
Generally, Public Sector entities are driven by the purpose of providing the basic public services to the common public at a reasonable cost in their respective industries by being also self-sustainable and profitable. However, profitability is not the primary motive.
The purpose of Companies in the Private Sector is profit-making by operating within the rules and compliances of the respective country.
Public sector companies mostly operate in industries such as Water, Electricity, Education, Oil & Gas, Mining, Defense, Banking, Insurance, Agriculture, etc.
Private Sector companies generally operate in multiple industries such as Technology, Banking, Financial Services, Manufacturing, Pharmaceuticals, Real Estate, Constructions, etc.
Companies in the Public Sector get all possible financial support from the Government even in adverse circumstances wherein the financial health of the companies is not good.
Very little or no financial support from the Government unless a private entity is too big and systemically important for the Country.
Entities in Public Sectors are publically traded on exchanges.
Entities in Private Sectors are publically traded on exchanges.
Companies in the Public Sector are relatively less profitable because of their primary purpose of not being profitability driven.
Companies in the Private Sector are relatively more profitable than their public sector counterparts in the same industry.
Since Public Sector companies are owned by the Government, therefore they are subject to the uncertainties related to unfavorable Government decisions and larger Government interference.
Private Sector entities are relatively less exposed to Government interference.
Public Sector companies find it relatively easy to operate in a country because of its proximity to the Government
Private Sector companies find it relatively difficult to operate and manage the regulatory issues and compliance in a country in comparison to Public Sector companies
Better placed to raise funds from the market because of backup by Government irrespective of the company’s financial health.
It depends upon the financial strength of the private sector entity—stronger the financials, better capacity to mobilize funds from the market.
Relatively relaxed work culture with higher job security. However, pay and perks may not be that attractive in comparison to private sector companies.
Competitive work culture with performance-based career growth and better pay than public sector companies.

Last updated on July 26, 2018 by Surbhi S
Gone are the days, when only the Public Sector was prevalent in the economy. At present, many countries have adopted the policy of Privatisation, through which Private Sector is also gaining importance. For the progress and development of any country, both the sectors must go hand in hand as only one sector cannot lead the country in the path of success. The private sector comprises of business which is owned, managed and controlled by individuals.
On the contrary, public sector comprises of various business enterprises owned and managed by Government. Such organizations are either fully or partly owned by the center or state and come under the separate ministry. Some of the public sector organizations are set up by a special act of Parliament.
A cut-throat competition between both the sectors, to prove itself better over the other sector. So, the article attempts to outline the differences between public sector and the private sector in tabular form.
The sector, which is engaged in the activities of providing government goods and services to the general public is Public Sector. The enterprises, agencies, and bodies are fully owned, controlled and run by the Government whether it is central government, statement government or a local government.
There are two types of public sector organizations, i.e. either the Government fully finances them through the revenues they raise by collecting taxes, duties, fees, etc. or the government holds more than 51% of the total share capital of the company which comes under various ministries. The enterprises are established with service motive. It is the largest sector, which works for the upliftment of the people by providing the following services to the people:
The segment of a national economy that is owned, controlled and managed by private individuals or enterprises is known as Private Sector. The private sector companies are divided on the basis of sizes like small & medium enterprises and large enterprises which are either privately or publicly traded organizations. They can be created in two ways, i.e. either by the formation of a new enterprise or by the privatization of any Public Sector Enterprise.
Business entities of the private sector are generally established with the sole objective of making profit and building brand reputation. They provide quality services to the community to win the trust and goodwill from people to survive in the long run and compete with the enemies. These enterprises also have to follow the government law and order. It is the largest sector in terms of employees.
Although in private sector performance is the basic criterion for job stability, i.e. if you perform well you will get promoted and if you won’t, you will be terminated. The major services provided by the Private sector are as under:
The following are the major differences between public sector and private sector:
Nowadays, Private Sector is progressing faster because promotes quality, not quantity; it encourages talent. Public Sector is full of reservations like reservations for minority section, females, a person with a disability and much more, here nobody sees talent, it is completely ignored and because of this, competent youths remain unemployed.
Public sector enterprises give so many facilities to their employees, which makes them satisfied that their job is secured, due to which, all the people are running after it like it is a marathon. However in the Private Sector, your job is never secured, even if you give years to it, you can be fired anytime just because of a single mistake.
Again in the private sector, where performance is king, the workload is much, but it keeps you active, this is missing in the public sector due to which the work sometimes becomes monotonous which creates boredom. One thing is really good in Private Sector i.e. it is corruption free. In Public Sector, you have to pay lots of money to the government officers even for a simple work, for no reason. It is an unending debate, both are good at their places, if the drawbacks are removed, they will surely prove good for the economy.
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The section of a nation's economy, which is under the control of government, whether it is central, state or local, is known as the Public Sector.
The section of a nation's economy, which owned and controlled by private individuals or companies is known as Private Sector.
To serve the citizens of the country.
Public Revenue like tax, duty, penalty etc.
Issuing shares and debentures or by taking loan
Police, Army, Mining, Health, Manufacturing, Electricity, Education, Transport, Telecommunication, Agriculture, Banking, Insurance, etc.
Finance, Information Technology, Mining, Transport, Education, Telecommunication, Manufacturing, Banking, Construction, Pharmaceuticals etc.
Job security, Retirement benefits, Allowances, Perquisites etc.
Good salary package, Competitive environment, Incentives etc.

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Home » Business & Industrial » Public Sector vs. Private Sector: What Is the Difference Between Public Sector and Private Sector?
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Public Sector vs. Private Sector : Every country’s economy is classified into different firms, representing the country’s growth, infrastructure, and functioning. These firms mainly involve both the public and private sectors. The main difference between the public and private sector is that the public sector is managed by the government to benefit the general population. While the private sector is handled by private individuals or corporations. 
Let’s take a closer look at public vs. private sector:
The public sector is a corporation or business run by the government to benefit the public. The public sector definition includes the control of government rather than simply function, which results in action like implementing public policy or public power, among others. The people working in government sectors are provided with many benefits packages. These benefits include health insurance and retirement. This makes it easier for workers to shift between different public sectors while having all the benefits.
A private sector is companies and businesses established by private organizations or individuals. The private sector plays a vital role in a country’s economy as it contributes to tax revenues, provides services, and ensures the efficient movement of capital. A private sector definition includes enterprises owned and controlled by individuals or private companies. If we compare public Vs. private sectors, private sectors employ more people than the government. The aim of the private sector is to take care of the needs of its customers. Because the development of their brand image is essential to them.
There are the following similarities between public and private sectors:
Schools come in both public and private sectors. The public schools are run and funded by the government, while the private schools are free from government interference and funded by students’ tuition fees or by a private individual. 
Military, public roads, hospitals, public transport, clean water, electricity, and public sector agencies are all examples of public sectors.
Technology, software developers, constructions, digital media companies, and catering businesses are all examples of the private sector.
Firms of all sizes, big, small, private, and public, play an important role in the country’s economy. It mainly depends upon the two sectors, public and private sectors. Whether it’s a public or private sector, it greatly affects the public and economy. The public sector includes companies and businesses managed by the government, while the private sector is managed by private individuals. We also see a lot of public and private sector examples in our daily life. The transport we go on to and the hospital and educational institutes we use are all public sectors. On the other hand, the food we eat from restaurants or information technologies like phones and newspapers all belong to the private sector. If we compare the benefits of the private sector versus the public sector, both provide benefits to public citizens.
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The public sector is for the benefit of the population, while the private sector works for its own profit.
The public sector gives promotions to its worker every year while the private sector doesn’t
The public sectors provide a high level of security, while there are no retirement benefits in the private sector.
Once you get a permanent job in the public sector, you will be stable, while the private sector cannot guarantee a permanent job.
The organizations which are owned and controlled by the government are called the public sector.
The organization or companies owned and managed by private individuals or companies
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