Who primarily runs public sector businesses?

Public sector businesses are primarily run by the government because they are established to provide services that benefit the public and fulfill societal needs, rather than to generate profit. Government entities own and operate these businesses, making decisions based on public policy, budgetary considerations, and the overarching goal of serving the community rather than the interests of individual shareholders or private investors.

Understanding the structure of public sector businesses is essential. Unlike private sector companies, which rely on private investors and aim to maximize shareholder wealth, public sector organizations focus on delivering essential services such as health care, education, and infrastructure development. This means their objectives and operations are intrinsically tied to government priorities and funding.

In contrast, shareholders, private investors, and non-governmental organizations typically operate within the private sector or the non-profit sector, focusing on different goals, which do not align with the primary objectives of public sector businesses. Public sector organizations do not prioritize profits; they are there to meet the needs of citizens and are funded by taxpayers.