Similarities Between Private & Public Sector

Many government and private entities operate in ambiguous ways, such as car insurance companies, which are private and compulsory to operate a motor vehicle.

The public sector refers to the apparatus of the state, supplying goods and obligatory services to the public. Its operating funding comes entirely from taxing the public. The private sector is made up of corporations and small businesses that also supply the public with goods and services, although the operating funds of private companies come from the voluntary purchases of customers.

Serve the Public

Private and public sectors ideally serve public interests. The private sector is beholden to investors and shareholders, which depend on sales to clients and customers to run profitable businesses. The public sector is beholden entirely to the public in a more transparent way by providing essential services and infrastructure.

Competition

In the private sector, companies that provide the same services and goods are naturally in competition, and the goal of the free market is for various corporations to gain dominance over one another. In the public sector, certain types of entities compete in a similar way, such as schools and public health clinics.

Hierarchies

Leaders, administrators, managers and workers exist at every level of government. In the private sphere, these departmental hierarchies and specialties exist, except with some slightly different names. These types of organizational structures are most efficient in delegating work in large organizations, so it's not surprising they're similar.

Failures

The common failing of public and private organizations is typically excessive bureaucracy, which makes organizations less efficient and more beholden to rules and petty politics. This makes organizations out of touch and stagnant.

References

• Public and private manager; Does the Difference Really Matter?
• Introduction to Business Activity; What Are the Public and Private Sectors?