Types of organisation
In business there are different types of organisation categorised by different types of ownership.
- private sector
- public sector
- third sector
These different categories of ownership make up what we call the sectors of the economy.
Private sector
Private sector organisations are owned by individuals. These businesses are driven by profit.
The profit from private sector organisations benefits the owners, Part owners of a business. and investors.
They are financed by private money from shareholders and by bank loans.
Public sector
Public sector organisations are owned by the government. They provide goods and services for the benefit of the community.
They are run by the government. They operate with money raised from taxes.
Third sector
Third sector organisations are owned and run voluntarily by An individual entrusted to run a charity for no personal gain..
These organisations are not run by the need to make profit but by the need to help the community.
They operate with money from donations and gifts. Any profits are reinvested in the organisation.
Third sector organisations can be run as a An organisation that is run like a business but that is “not for profit”. All profits are reinvested into the Social Enterprise. .