Providing goods and services - EduqasPrivate and public sector services
Businesses exist to provide either a good or service to consumers and the general public. These products are sold by either public or private sector businesses.
There are distinct differences between the private and public sector in the provision of goods and services.
Public sector
The public sector refers to anything that is produced, sold or provided by organisations owned and run by the government. Money from public finances raised in taxes is used to run these businesses.
In the UK, many essential services are public sector businesses. Examples of public sector services include education, emergency services and medical care.
Private sector
Private sector organisations are owned by individuals and shareholdersA part owner of a private or public limited company.. These businesses are driven by profitsThe amount of money made after all costs are deducted.. The profit from private sector organisations benefits the owners, shareholders and investors. They are financed by private money from shareholders and banks.
In the UK, most of the goods and services available are provided by private sector businesses. Examples of private sector goods and services include broadband service providers, food shops, mobile phone providers, car dealerships and consumer goods companies, eg those selling electronic items such as TVs, fridges and laptops.