he private sector – is made up of industrial and commercial companies that have developed to react to stable and shifting demands of the market. Each company exists to make a profit and is owned by shareholders, who are the main beneficiaries and not the government. Stakeholders are the ones who decide who the members of the board of directors are. These directors are experts in their field and are responsible for the formulation and implementation of all policies (Leatherbarrow et al 2010). The private sector employs workers through individual business owners, or other nongovernment agencies, jobs include those in financial services, newspapers, hospitality or other nongovernment positions. Private-sector workers tend to have more pay increases, more career choices, greater opportunities for promotions, less job security and less-comprehensive benefit plans than public-sector workers. Working in a more competitive marketplace often means longer hours in a more demanding environment than working for the government.

Public Sector – organisations are owned and controlled by the government (or local government). They aim to provide public services, regularly free at the point of delivery for example, government departments and local authorities provide us with essential services, examples of the are illustrated below:

There are particular goods, called ‘merit goods’ and ‘public goods’ which can cause problems for the private sector, and so they are often better provided by the public sector.

Voluntary or third sector – These are usually social enterprises with primary social objectives. These types of organisations receive funding in the form of donations, public sector bodies or public funds. Motivated by selfless interests rather than commercial though profits are reinvested into the business, hence they have some sort of business mindedness (Martin et al 2009).