Sectors of economy
The economy is divided into three sectors:
- private
- public
- third
Within each sector of the economy there are different types of businesses with different aims and objectives.
Private sector
The type of organisations that would be in the private sector are:
- A business owned and controlled by one person.
- A business owned and controlled by 2 to 20 people.
- A business that sells shares privately to invited members.
Private sector organisations, such as a local newsagent or large supermarket chain are owned and controlled by private individuals. Their primary aims are to survive and make a profit.
Public sector
The type of organisations that would be in the public sector are:
- national government
- local government
Public sector organisations are owned and controlled by the government. They aim to provide a service to the public and are funded by taxes. Public sector organisations function in areas such as health, education, housing and social work.
Third sector
The type of organisations that would be in the third sector are:
- A business set up to raise awareness or funds for a cause.
- voluntary organisations
- A business that aims to help a social cause.
Third sector organisations are set up to help a cause or provide a service to members. They aim to raise money and increase awareness for good causes. Examples of third sector organisations would be Oxfam, The Big Issue or a local youth club.