Public sector organisations are owned, controlled and managed by the government or other state-run bodies. Private sector organisations are owned, controlled and managed by individuals, groups or business entities.
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Difference between Public and Private Sector - Testbook.com
Last Updated on Jul 31, 2023
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IMPORTANT LINKS
An Overview of the Public Sector
The Public Sector is largely made up of organizations that are under the direct control of the government. This includes government agencies, state-owned enterprises, and public services. These organizations may be completely or partially owned by either the central or state governments.
Some public sector organizations operate on a non-profit basis, while others may engage in commercial activities. They aim to provide affordable goods and services to the public, with a focus on public welfare.
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An Overview of the Private Sector
The Private Sector, on the other hand, comprises businesses and organizations that are privately owned and operated. These can range from small to large-scale entities, with the primary aim of making a profit. They can raise funds from private individuals, groups, and the public.
The private sector includes a variety of business entities, such as sole proprietorships, partnerships, and corporations. Since the New Economic Policy of 1991, the private sector has seen significant growth in India, contributing to the expansion of the Indian economy.
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Comparing the Public and Private Sector
Let's explore the key differences between the Public and Private Sectors:
Public Sector
Private Sector
Definition
The public sector comprises organizations controlled and managed by the government.
The private sector includes businesses owned and managed by private individuals or entities.
Ownership
Public sector entities are owned by the government, either fully or partially.
Private sector entities are owned by individuals or entities, with no government interference.
Motive
Public sector organizations aim to serve the public interest.
Private sector organizations aim to make a profit.
Source of Capital
Public sector funding comes from taxes, duties, bonds, and treasury bills.
Private sector funding comes from owners or through loans, issuing shares, and debentures.
Employment Benefits
Public sector jobs offer benefits like job security, housing, allowances, and retirement benefits.
Private sector jobs offer benefits like higher salaries, promotion opportunities, and performance-based incentives.
Stability
Public sector jobs are stable, with low risk of termination due to non-performance.
Private sector jobs offer less stability, with higher risks of termination due to non-performance or cost-cutting measures.
Promotions
In the public sector, promotions are typically based on an employee's seniority.
In the private sector, promotions are typically based on an employee's performance and merit.
Areas
The public sector includes areas like law enforcement, military, healthcare, education, and banking.
The private sector includes areas like technology, finance, consumer goods, construction, and pharmaceuticals.
Answers & Comments
Answer:
Public sector organisations are owned, controlled and managed by the government or other state-run bodies. Private sector organisations are owned, controlled and managed by individuals, groups or business entities.
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Home / Key Differences / Difference between Public and Private Sector - Testbook.com
Difference between Public and Private Sector - Testbook.com
Last Updated on Jul 31, 2023
Download As PDF
IMPORTANT LINKS
An Overview of the Public Sector
The Public Sector is largely made up of organizations that are under the direct control of the government. This includes government agencies, state-owned enterprises, and public services. These organizations may be completely or partially owned by either the central or state governments.
Some public sector organizations operate on a non-profit basis, while others may engage in commercial activities. They aim to provide affordable goods and services to the public, with a focus on public welfare.
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Want to know more about this pass ?
Explore SuperCoaching
An Overview of the Private Sector
The Private Sector, on the other hand, comprises businesses and organizations that are privately owned and operated. These can range from small to large-scale entities, with the primary aim of making a profit. They can raise funds from private individuals, groups, and the public.
The private sector includes a variety of business entities, such as sole proprietorships, partnerships, and corporations. Since the New Economic Policy of 1991, the private sector has seen significant growth in India, contributing to the expansion of the Indian economy.
testbook pass
Get Unlimited Access to Test Series for 810+ Exams and much more.
Know More
₹14/month
Buy Testbook Pass
Comparing the Public and Private Sector
Let's explore the key differences between the Public and Private Sectors:
Public Sector
Private Sector
Definition
The public sector comprises organizations controlled and managed by the government.
The private sector includes businesses owned and managed by private individuals or entities.
Ownership
Public sector entities are owned by the government, either fully or partially.
Private sector entities are owned by individuals or entities, with no government interference.
Motive
Public sector organizations aim to serve the public interest.
Private sector organizations aim to make a profit.
Source of Capital
Public sector funding comes from taxes, duties, bonds, and treasury bills.
Private sector funding comes from owners or through loans, issuing shares, and debentures.
Employment Benefits
Public sector jobs offer benefits like job security, housing, allowances, and retirement benefits.
Private sector jobs offer benefits like higher salaries, promotion opportunities, and performance-based incentives.
Stability
Public sector jobs are stable, with low risk of termination due to non-performance.
Private sector jobs offer less stability, with higher risks of termination due to non-performance or cost-cutting measures.
Promotions
In the public sector, promotions are typically based on an employee's seniority.
In the private sector, promotions are typically based on an employee's performance and merit.
Areas
The public sector includes areas like law enforcement, military, healthcare, education, and banking.
The private sector includes areas like technology, finance, consumer goods, construction, and pharmaceuticals.