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Private sector

Translation
Private sector
Economic sectors
Three-sector hypothesis
Primary sector: raw materials
Secondary sector: manufacturing
Tertiary sector: services
Theorists
Colin Clark · Jean Fourastié
Additional sectors
Quaternary sector · Quinary sector
Sectors by ownership
Business sector · Private sector · Public sector · Voluntary sector
v · economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary sector.

Contents

Legal status

A variety of legal structures exist for private sector business organizations, depending on the jurisdiction in which they have their legal domicile. Individuals can conduct business without necessarily being part of any organization.

The main types of businesses in the private sector are:

  • Sole proprietor or sole trader
  • Partnership, either limited or unlimited liability
  • Private Limited Company or LTD-limited liability, with private shares
  • Public Limited Company – shares are open to the public. Two examples are:
    • Franchise – business owner pays a corporation to use their name, receives spec for the business
    • Workers cooperative – all workers have equal pay, and make joint business decisions

In countries where the private sector is regulated or even forbidden, some types of private business continue to operate within them.

Employment

The private sector employs the majority of the workforce in some countries.[citation needed] However, in some countries such as the People's Republic of China, the public sector employs most of the workers.[1]

Statistical organizations

See also

Emblem-money.svg Economics portal

References

  1. ^ Joe Zhang. "China’s private sector in shadow of the state". ft.com. http://news.ft.com/cms/s/efebf320-34ff-11da-9e12-00000e2511c8.html. Retrieved 2007-07-06. 

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