Private sector

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Private sector

Private sector (/ˈpraɪvɪt ˈsɛktər/) refers to the part of the national economy that is not under direct government control. The term originates from the Latin "privatus", meaning "individual" or "private", and the English "sector", meaning "a distinct part or branch of a nation's economy or society or of a sphere of activity such as education".

The private sector includes all for-profit businesses that are not owned or operated by the government. These businesses are usually run by individuals or companies who have the goal of making a profit. They are a critical part of the economy, providing goods, services, and jobs.

Related Terms

  • Public sector: The part of the economy that is controlled by the government.
  • Mixed economy: An economic system that includes both private and public sectors.
  • Free market: An economic system where prices are determined by unrestricted competition between privately owned businesses.
  • Privatization: The process of transferring an enterprise or industry from the public sector to the private sector.

See also

External links

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