Public Sector vs Organized Sector – Difference and Comparison

What is Public Sector?

The public sector is a section of society that is controlled by a public authority. The sector includes all organizations that taxpayers fund, such as government agencies, schools, hospitals, and more. The federal government in the United States, for example, is responsible for governing the public sector.

The sector is a part of the government that is responsible for providing services to the public. It includes departments like healthcare, education, and transportation. The public sector funds its activities through taxes. That is why every citizen should be diligent in remitting their taxes whenever they are due.

The government regulates the public sector through legislation, which sets standards for how it operates and what it can do. The legislation also provides guidelines on how it should be funded and monitored.

The public sector, led by the government, is vital in any country because it provides services that are otherwise almost impossible for anyone else to provide. For example, it is very expensive to build roads. But a government can collect money from most citizens and build them.

What is Organized Sector?

The organized sector of the economy is a part of the service sector. It consists of all formal enterprises registered and regulated by the government.

The organized sector, the fastest-growing part of the U.S. economy, comprises professional and skilled workers with advanced degrees and credentials who earn salaries that are higher than the median wage.

This sector consists of all the private companies registered with the government. The economic activities in this category include manufacturing, mining, trade, and service industries.

The organized sector creates so many jobs, thus significantly contributing to the economic growth of a country. Governments all over the world recognize this.

Government is the ultimate authority in a country and as such has the power to create laws that will help regulate the economy in a way that favors the private or organized sector.

It can make policies that will help reduce taxes and duties and streamline business processes like starting up and running a business. Further, some governments provide financial aid to start-up companies and providing grants for research and development.

Difference Between Public Sector and Organized Sector

The public sector is mainly comprised of the government, the largest employer in many countries. It also includes public services such as schools, hospitals and police forces.

Public sector organizations are funded by taxes and are accountable to the government. They have a social responsibility to provide services for the community.

The organized sector comprises private companies that employ people to produce goods and provide services. These organizations are funded by revenue from customers. Organized sector companies have a responsibility to their shareholders or owners.

Comparison Between Public Sector and Organized Sector

Parameter of ComparisonPublic SectorOrganized Sector
How it is runThe government owns all assets and provides each service the public needs (citizens).Individuals or groups own assets and run the sector.
LegislationGoverned by its laws and regulations.Governed by laws and regulations of the government of the land.
ExamplesDefense and protection, hospitals, schools, and garbage collection.Manufacturing, food chains, and hotels.
MoneyTaxes the citizens to meet their financial obligations.Gets capital through shares and profits.
AimTo provide services free of charge.Businesses in the sector are established to give returns to owners in form of profits.