Private sector

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That part of a national economy which is not owned by the state. Compare with public sector.

That part of an economy in which goods and services are produced by individuals and companies as opposed to the government, which controls the public sector.

The part of the economy that is not state controlled, and is run by individuals and companies for profit. The private sector encompasses all for-profit businesses that are not owned or operated by the government. Companies and corporations that are government run are part of what is known as the public sector, while charities and other nonprofit organizations are part of the voluntary sector.

Investopedia Says:
In most free-market economies, the private sector is the sector where most jobs are held. This differs from countries where the government exerts considerable power over the economy, like in the People's Republic of China. The Bureau of Labor Statistics tracks and reports both private and public unemployments rates for the U.S.

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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 t e

In 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.

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]

See also

Economics portal

• Company law
• Free enterprise
• Private enterprise
• Private law
• Public economics

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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