Private sector vs. public sector

Basically, there are three types of economies, private, public and mixed. Private sector is the part of an economy which is run mainly for private profits and is not governed by the state. Talking about the public sector, the economy is governed by the state only, and in a mixed economy, some part of the economy is governed by the state and other is governed by private companies and organizations.

As compared to public sector, schools, training institutions and colleges which are owned by private sector show better results. Also, it has been seen that privately governed hospitals and clinics also receive more patients with an expectation to receive better treatment procedures. Almost every type industry is established in a private economy and most of the privately owned companies possess the ability to provide better services to the people. While public sector usually gets caught in corruption, bribery and laziness, workers in private companies are believed to be more efficient and proficient and thus provide better quality services to the consumers.

Earlier, people did not used to invest their money into the economy and they wanted to keep all the money they owned in their lockers only. But now they have started realizing the importance of making investments at work and thus are circulating more money to get momentum. When the money comes out of the lockers and gets circulated in the economy, more amount of money is generated and in this way, people of private sector become able to serve their economy in a better manner. In order to serve better to their customers, private companies have more job opportunities and are always ready to welcome qualified prospects. Hiring more professionals means increasing production and this leads to further generation of employment opportunities.

In a mixed economy, the public sector does not provide much employment opportunities to the citizens and that is why more and more qualified people turn to the private sector to seek employment. Apart from that, there are more chances of promotion in private companies, as compared to public sector in which even the hard working and efficient workers have to wait for their turn for seniority.  Private companies help the state in providing better training, better education and better environment to the citizens of the nation which had to be the responsibility of the government. As compared to private sector, employees in the public sector are more vulnerable to indulge in scams, muddles, scandals, bribes, licenses, selling quotas and corruption and thus they discourage people who want to move ahead in the economy.

Undoubtedly, private sector has created fascination and curiosity to a wide range to tumble the task of status in the national economies. Apart from that, it has also taken active steps for enhancing scope of the private ownership in addition to development of the private sector. Even the public sector companies have been handed over to the private companies and because of the better performance of private companies, privatization has become quite acceptable in almost every part of the world. Because of the competition in the market among different private companies, each and every private company works in a better way to be better than the competitor and in this manner, private companies are bound to provide better services at competitive prices. While public sector works on the basis of monopoly and in the lack of their competitor in the market, they tend to work as per their own rules and as per their own schedule.

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