Private sector
| Economic sectors |
|---|
| Three-sector theory |
|
Primary sector: raw materials Secondary sector: manufacturing Tertiary sector: services |
| Additional sectors |
|
Quaternary sector: information services Quinary sector: human services |
| Theorists |
| AGB Fisher · Colin Clark · Jean Fourastié |
| Sectors by ownership |
| Business sector · Private sector · Public sector · Voluntary sector |
The private sector is the 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 (areas of the economy controlled by the state being referred to as the public sector).
Employment
The private sector employs most of the workforce in some countries. In private sector activities are guided by the motive to earn money.
Regulation
The private sector is legally regulated by the state. Businesses within one country are required to comply with the laws in that country.
In some cases, usually involving multinational businesses that can pick and choose their suppliers and locations based on their perception of the regulatory environment, these regulations have resulted in uneven practices within one company. For example, workers in one country may benefit from strong labour unions, while workers in another country have very weak laws supporting labour unions, even though they work for the same employer. In some cases, industries and individual businesses have chosen to self-regulate by applying higher standards for dealing with their workers, customers, or the environment than the minimum that is legally required of them.[1]
See also
References
- ↑ Haufler, Virginia (2013-01-25). A Public Role for the Private Sector: Industry Self-Regulation in a Global Economy. Carnegie Endowment. ISBN 9780870033377.