Public sector businesses are government-owned and can be profit or non-profit, including retail, manufacturing, and service industries such as healthcare and education. They aim to promote growth and generate public sector jobs while complying with government guidelines.
The different types of businesses in the public sector are basically government-owned businesses involved in producing and delivering goods and services to the people. These units differ from their private sector counterparts in that they may or may not be profit-oriented, with their primary function typically being that of a catalyst in promoting business growth. Public sector companies should include any type of business, from retailing to public services such as electricity and education, as long as the entity complies with guidelines specified by the government.
When the government owns a minimum of 51% in a retail business, the stores in that business operate in accordance with the tax standards and regulations applicable to all other public sector businesses. Retail outlets such as department stores, discount stores, and supermarkets are generally classified by the products they sell. This branch aims to generate work in the public sector and stimulate economic growth by providing incentives to both individuals and organizations.
One of the main public sector enterprises is manufacturing, which involves the large-scale conversion of raw materials into finished products. The universal importance of manufacturing lies in the fact that most societies depend on the supply of finished products for their survival and that it is the efficiency of industrial production that determines economic strength. It is through manufacturing that the government creates hordes of public sector jobs and when combined with private sector employment this can result in a contribution to growth. Without these types of public sector businesses, countries would often have to rely heavily on imported goods, sending a large portion of their tax revenues abroad.
Among the various public sector companies, it is the service industries in the form of hospitality, repair, healthcare and education that are the most widespread. Service businesses differ from other types of employment in the public sector because of the intangible nature of the services provided rather than a visible product. These types of positions employ skilled workers who help shape various forms of government, the way children are taught, and how tax revenues are spent. Other public sector businesses would include hospitals, libraries, and even non-profit organizations.
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