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In economics, the private sector is that part of the economy which is both run for private profit and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary sector.

Legal status

A variety of legal structures exist for private sector business organizations, depending on the jurisdiction in which they have their legal domicile. Individuals can conduct business without necessarily being part of any organization.

In countries where the private sector is regulated or even forbidden, some types of private business continue to operate within them.

The private sector focuses on the needs of the shareholders. be


The private sector employs the majority of the workforce in some countries. However, in some countries such as the People's Republic of Chinamarker, the public sector employs most of the workers.

Statistical organizations

See also


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