Aims of Public Sector and Private Sector

Usually the aim of public sector business is to provide services to the community. For example if the transport system is owned by the government and it is running a bus service to an interior village and it is not getting enough customers, the government might still continue it as its main objective is to provide service and not to maximise profits. Whereas private sectors business give priority to profits and may end the service if it does not find it profitable to run the service.

Secondly Public sector strives to create employment whereas Private sectors main aim is to become efficient and cut cost and in this process they might cut jobs.

Public sector business usually locates in regions where there is underdevelopment so as to create jobs and income for local population. Private sectors might not keep these things in consideration and will look for external economies of scale.

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