private sector

(noun)

All organizations in an economy or jurisdiction that are not controlled by government, including privately owned businesses and not-for-profit organizations.

Related Terms

  • pink-collar
  • public sector

Examples of private sector in the following topics:

  • Small Businesses and U.S. Jobs

    • Half of the U.S. private sector is populated by small businesses and the other half by large businesses.
    • The private sector consists of a wide variance in business size, grouped into small, medium, and large organizations.
    • Using this definition, just over one-half of the private sector is populated by small businesses and the other half by large businesses.
  • Government and Nonprofit Accounting

    • There is an important difference between private sector accounting and governmental accounting.
    • In the government environment, public sector entities have differing goals, as opposed to the private sector entities' one main goal of gaining profit.
    • In the private sector, the budget is a tool in financial planning and it is not mandatory to comply with it.
    • The usage of the results of accounting processes of government differs significantly from the use thereof in the private sector.
    • The governmental accounting system has a different focus for measuring accounting than private sector accounting.
  • Employee Promotions

    • In the nonprofit sector pay increases are modest, so the prestige of a promotion is one of its main benefits.
    • In the private sector, promotion can include substantial salary increases, benefit increases, stock options, and various "perks," such as a bigger office or executive parking.
    • Generally speaking, there are more procedural safeguards against preferential treatment in the public sector as compared with the private sector, where senior managers enjoy broad discretion in making promotions.
  • Privatization

    • Privatization is the process of transferring ownership of a business from the public sector to the private sector.
    • Privatization can have several meanings.
    • Primarily, it is the process of transferring ownership of a business, enterprise, agency, public service, or public property from the public sector (a government) to the private sector, either to a business that operates for a profit or to a non-profit organization.
    • Privatization has also been used to describe two unrelated transactions.
    • This is often described as private equity.
  • Trends in Labor-Management Relations

    • In the early 1950s, a third of the United States' total labor force was unionized; by 2012, the proportion was 10%, falling 5% for the private sector.
    • By 2011, fewer than 7% of employees in the private sector belonged to unions.
    • The strike collapsed, PATCO vanished, and the union movement as a whole suffered a reversal, accelerating the decline of membership across the board in the private sector.
    • After 1960, public sector unions grew rapidly and secured good wages and high pensions.
    • White-collar jobs in the service sector, often filled by women workers, include:
  • Government Failure

    • The expanded borrowing is in excess of its revenue which crowds out private sector investment due to higher interest rates.
    • Government spending also crowds out private spending.
    • Regulatory risk is a risk faced by private sector firms when there is a chance that regulatory changes will negatively affect their business.
    • The government is tied directly to the public sector.
    • Government failure is an analogy made by the public sector when market failure occurs.
  • Modern Labor Organizations

    • Private sector union members are tightly regulated by the National Labor Relations Act (NLRA), passed in 1935.
    • Public sector unions are regulated partly by federal and partly by state laws.
    • Most of the recent gains in union membership have been in the service sector, while the number of unionized employees in the manufacturing sector has declined.
    • Historically, the rapid growth of public employee unions since the 1960s has served to mask an even more dramatic decline in private-sector union membership.
    • The strike collapsed, PATCO vanished, and the union movement as a whole suffered a major reversal, which accelerated the decline of membership across the board in the private sector.
  • Mixed Economies

    • A Mixed Economy exhibits characteristics of both market and planned economies, with private and state sectors providing direction.
    • A mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies.
    • Subsequently, some mixed economies have expanded in scope to include a role for indicative economic planning and/or large public enterprise sectors.
    • Keynesian economics advocates a mixed economy — predominantly private sector, but with a significant role of government and public sector.
    • Restrictions are sometimes placed on private mail systems by mixed economy governments.
  • Health Care in the U.S.

    • Most Americans under age 65 (59.3%) receive their health insurance coverage through an employer (which includes both private, as well as civilian public-sector employers) under group coverage, although this percentage is declining.
    • Most Americans under age 65 (59.3%) receive their health insurance coverage through an employer (which includes both private as well as civilian public-sector employers) under group coverage, although this percentage is declining.
    • Healthcare facilities are largely owned and operated by the private sector.
    • Most Americans under age 65 (59.3%) receive their health insurance coverage through an employer (which includes both private, as well as civilian public-sector employers) under group coverage, although this percentage is declining.
    • Outline the problems with American health care, primarily due to privatization
  • The Growth of Government

    • A new word -- "privatization" -- was coined and quickly gained acceptance worldwide to describe the practice of turning certain government functions over to the private sector.
    • In the United States, privatization has occurred primarily at the municipal and regional levels.
    • Privatization of public services remains controversial, however.
    • Public sector unions, not surprisingly, adamantly oppose most privatization proposals.
    • Advocates counter that privatization can be effective if it introduces competition.
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