Public and Private Enterprises

Private and Public Sector

by Shanica Burrell

​What is a Private Sector?

​Private Sector is the part of the economy that is funded by individuals and is, therefore, owned and controlled by private firms. The objective of the private sector is to make profits.

​Examples of Firms in the Private Sector

• family owned businesses

• ​One-owner businesses

• ​large business with several investors

• ​multinational companies

Open Ended

Can you think of another private company?

​Features of Firms in Private Sector

• ​the aim is to make a profit

• ​owners are free to make decisions

• ​the business is funded by owners or private individuals

• ​profits are shared among shareholders or those who invest in the business

• ​there is little or no government control

​What is a Public Sector?

​Public Sector is that part of the economy that is financed by the government through the taxpayers and is operated and controlled by the government. The government in many countries, owns and runs key industries such as rail and bus companies; oil, gas and electricity.

​Examples of Public Sector Organizations

• ​water and sewage services

• ​government agencies such as the Center for Disease Control (CDC), Education and Social Services

• ​government departments such as the tax department

​

Features of Firms in Public Sector

​

• ​is funded by the government through taxation

• ​aims to provide a services at the lowest possible price

• ​uses profits to improve the efficiency of the firm or to benefit all citizens

• ​is driven by the need to provide goods and services to the population

Multiple Choice

What is a market failure?

• When the government provides a poor service

• When the market doesn't provide the goods consumers need.

Multiple Choice

Jim maintains his family by using his private vehicle as an Uber Driver.

• private

• public

Multiple Choice

Mary goes to Florida every three month to shop. On her return she sells her goods in the Etsy (online store).

• private

• public

Multiple Choice

China's Ministry of Water Resources is a government company that owns and supplies water to all homes in China.

• Private

• Public

Multiple Choice

The Tennessee Department of Agriculture is an agricultural company that grants loans to farmers, is controlled by Tennessee State.

• private

• public

Multiple Choice

The Post Office is a government owned company entrusted with delivering mail across the USA.

• private

• public

Multiple Choice

WeGo Public Transit is a Nashville public bus transport company that is funded by taxpayers.

• private

• public

​Imagine if we had to pay for all those things as individuals! Almost no one would be able to afford it. But when all our tax dollars are combined, it's possible to make those goods and services available to all. We still have to contribute in the form of fees for some of these. For example, we pay tolls for some highways. We pay monthly usage fees for water, electricity, and waste disposal. The availability and cost of these goods and services vary according to where you reside.

Public Health

​

Many hospitals receive tax dollars to help them operate. ​This ensures that needed medical care is available. It also makes sure the care is there for all, regardless of financial status.

​

​Public health includes services like local health departments. They offer services such as

vaccinations/immunizations

communicable disease testing

information about other social​ services

​

​Public Safety

​

This includes law enforcement, fire protection, ​disaster response, criminal justice, and other services.

​

​

​Again -

Could you afford to hire your own personal bodyguard, fire fighter​, water purification system, military?

Me, neither!​

​How about public parks and recreation facilities? senior citizen programs? public transportation? public parking areas?

​

Multiple Choice

What is a public good?

• A good or service provided by the market through tax dollars.

• A good or service provided by the govt. through tax dollars.

Multiple Select

Check All That Apply: Choose the ones below that are public goods.

• School

• Libraries

• Roads

• Movie Theaters

Multiple Choice

Fitness First

• public

• private

Multiple Choice

PepsiCo

• public

• private

Multiple Choice

Gucci

• public

• private

Multiple Choice

Nike

• public

• private

Multiple Choice

Microsoft

• public

• private

Multiple Choice

Government is involved in the amount of money paid in wages through setting minimum wage limits.

• True

• False

Multiple Choice

What is the main aim of the Private sector?

• To provide essential services such as hospital care

• To maximise profits

Multiple Choice

Government organizations are a part of the ______________ sector.

• public

• private