What is the Major Difference Between Private Sector Enterprises and Public Sector Enterprises?


In the search for employment opportunities, candidates usually consider both public and private positions. The public sector provides services to the general public, while the private sector focuses on the interests of individual organisations or entities. Knowing the differences between the two sectors can help you decide which one best suits your career goals and interests.
What is the major difference between Private and Public Sector Enterprises?
The public and private sectors are fundamentally different, but they often partner to achieve common goals, such as investing in infrastructure, construction, or transportation projects. Here are some of the major differences between both the sectors:
Ownership
The major difference between the private and public sectors is the ownership of organisations. In the public sector, member organisations are owned and run by the Government of India or a state government. It is possible for the government to have full or partial ownership, control and management. In contrast, private sector enterprises are owned and operated by individuals or private companies.
Purpose
Although some state-owned companies may engage in commercial activities and profit, public sector organisations are primarily concerned with providing services for the public good. Military, law enforcement, and public transit are examples of public sector enterprises. In the private sector, profit and growth are usually the primary goals.
Financial support
The government provides funding and financial support to public sector organisations. Public sector organisations may receive funds from direct and indirect taxes collected from the public. They may generate revenue from commercial activities, such as selling products and services. Meanwhile, External entities such as banks and investors may provide some financial assistance to organisations in the private sector. They often finance themselves through internal revenue generation, initial public offerings (IPOs), or loans.
Remuneration
In the public sector, employees work for public agencies, local government, state government, or federal government agencies. Government funds are usually used in this domain to pay their employees. Individuals who work for a privately-owned business or public company in the private sector are paid from the profits generated by the business.
Typical industries
There are several types of employment in the public sector, including education, defence, transportation, and infrastructure. Individuals can also work in government, whether as civil servants or politicians. The private sector focuses on making a profit, which makes its scope broader and more diverse. Financial services, hospitality, real estate, and technology are among the industries where private entities dominate.
Which are the top PSUs in India?
In India, the economy is growing rapidly, which means there are more jobs available, but government jobs will never go out of style. It is understandable that Indian youngsters want a stable job in public sector and a career path like a private one. So, PSUs or semi-governments are the ideal career path for them. India also has a number of PSUs, all with their own recruitment processes and procedures. So go on to know which are the top 10 PSUs in India.
1. ONGC (Oil and Natural Gas Corporation)
2. IOCL (Indian Oil Corporation Limited)
3. BHEL (Bharat Heavy Electricals Limited)
4. NTPC (National Thermal Power Corp)
5. PGCIL (Power Grid Corporation of India Limited)
6. GAIL (Gas Authority Of India Limited)
7. BPCL (Bharat Petroleum Corporation Limited)
8. EIL (Engineers India Limited)
9. SBI (State Bank of India)
10. SAIL (Steel Authority of India)
Hope you got a better understanding of the main difference between Private and Public Sector Enterprises and know the top PSUs in India.



See also  Chapterwise List of Deleted Topics

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