Generally the private sector is more efficient because efficiency means lower cost and more profit. The public sector doesn't have to worry about profit so there is no incentive to be efficient.
While it may seem that the private sector is more efficient, the answer is actually ambiguous. Many studies in the 70s and 80s pointed to this efficiency in the private sector, but new studies (with the addition of new data from across the world) are showing there is actually little difference between the public sector and the private sector's abilities in reducing poverty.
Monetary policy has a more direct influence on the private sector
Oh, dude, you're asking about Nigerian executives who made the leap from the public sector to the private sector? Well, they're probably pretty experienced, used to dealing with bureaucracy, and maybe a bit tired of all the red tape. Like, they've got skills in navigating government systems, but now they're ready to make some real money and have a bit more freedom. It's like going from playing in a high school band to headlining at Coachella - big change, big opportunity.
It becomes more expensive for the private sector to borrow
Almost every country in the world is a mixed economic system, there are no real pure capitalistic or pure command economies any more. Nations either have a capitalistic economy (which is mixed but more capitalistic than socialistic) or mixed command economies (which has a private sector but this is dwarfed by the public sector).
While it may seem that the private sector is more efficient, the answer is actually ambiguous. Many studies in the 70s and 80s pointed to this efficiency in the private sector, but new studies (with the addition of new data from across the world) are showing there is actually little difference between the public sector and the private sector's abilities in reducing poverty.
Let's put it this way, the public sector is under WAY more scrutiny than the private sector is.
Over 22 million public sector union workers are not paying for obamacare. (paid by taxes). The public sector unions' retirement and healthcare is paid for by taxpayers. ANOTHER THING: Although public sector wages are, on average, 44% more in wages and benefits, THEY will bargain to maintain that disparity at 44%. Guess who will cover THAT?
private business is the business, where more than 50% shares are held by private persons or parties, and ownership remains in the hands of private persons. public business is the business where more than 50% shares are held by govt whether central or state, and ownership remains in the hands of govt. authourity
Private enterprises don't have to make their financial documents public. Private enterprises can enter into contracts with other businesses without having to get the approval of the Board of Directors.
The public sector includes governmental entities, usually that part of government that provides services to the public (police, fire, military, public education, etc.) The private sector includes all nongovernmental entities --- individuals, businesses, both publicly held businesses and privately held businesses, etc.
Ownership of the public sector of a certain country is shared equally by all citizens of that country. There should be certain laws that specify how does the PS get revenues and how does it spend them, how does it hire & fire employees, lowest and highest possible salaries ...etc. While ownership of any private sector entity is limited to the persons who paid up the capital to form it. Those persons may or may not be citizens of that country. Each private sector entity could invent its own rules of hiring & firing and payouts ...etc.
Because the private sector is entirely geared towards creating revenue at the cost of anything else. By contrast, revenue-gathering is not a concern for the public sector, while spending any money that would otherwise be revenue in useful ways is a major concern.
No. Oriental Bank of Commerce is a Public Sector Bank. visit http://www.obcindia.co.in for more details about this bank.
Private sector banks are better than public sector banks in the following aspects:They are more customer friendly and customer oriented. If they don't get customers they go out of business (Unlike public sector banks that would stay in business anyway because they are owned and run by the government)They offer more facilities than public sector banks (Because of the same reason in point a)They offer better interest rates for depositsThey offer a wider variety of products.I am not saying that public sector banks don't do all these things, just that they don't do it as aggressively or effectively as private sector banks because their existence is not dependent on customers whereas for private banks they will be bankrupt if customers refuse to bank with them.
Monetary policy has a more direct influence on the private sector
Because normative analysis inherently deals with 'what should be'. Public sector activities are politically-motivated and chosen, so they reflect what the public believes 'what should be'.