UK Public Sector vs Private Sector business
In the United Kingdom, the economy is a complex interplay of various sectors, with the public and private sectors standing out as two of the most significant players. Each sector has its unique characteristics, objectives, and impact on the nation’s economy and society. In this blog, we’ll delve into the key differences between public and private business in the UK.
1. Ownership and Control:
- Public Sector: In the UK, the public sector comprises organizations owned and operated by the government. These include government departments, local authorities, and public services like the National Health Service (NHS). Decision-making in the public sector is often influenced by government policies, regulations, and public interest.
- Private Sector: The private sector consists of privately-owned businesses, ranging from small enterprises to large corporations. Here, decisions are driven by profit motives and market forces. Shareholders or owners control private sector organizations, and they have a significant say in the company’s operations.
- Public Sector: The primary goal of the public sector is to provide essential services and benefits to citizens. This includes healthcare, education, public transportation, and social welfare. Profit isn’t the central focus; instead, the emphasis is on ensuring equitable access to services and addressing societal needs.
- Private Sector: Profit generation is the primary objective of private sector organizations. They aim to maximize shareholder value and compete in the marketplace. While some private companies engage in corporate social responsibility, their primary focus remains on financial success.
- Public Sector: The public sector relies heavily on government funding, which is generated through taxation, grants, and subsidies. The government allocates resources to various public services and departments based on budgetary priorities.
- Private Sector: Private sector businesses are funded by private capital, which can come from individual investors, venture capitalists, loans, or stock market investments. They generate revenue through the sale of goods and services.
Business benefits of working within the Public Sector
Working in the Public Sector via framework agreements can offer a business- above all else- the guarantee to be paid on time. This is because Government payment policy aims to pay 90% of invoices within five days, and all invoices within 30 days.
During times of economic downturn, the Public Sector continues to spend, even when the Private Sector is forced to cut spending and wages. This is because Public Sector expenditure is fuelled by our taxes.
Government bodies use systems called frameworks to find suitable contractors and businesses to provide services to the Public Sector. To qualify for a framework, a business must meet certain criteria- such as revenue, number of employees and certain accreditations. This is to make sure that taxpayers’ money is spent wisely, and that the chosen businesses can successfully fulfil the contracts.
You must create a bid to join a framework, and the chances of being accepted rely heavily on the quality of the bid submitted.
How can GovData help?
Our framework specialists can guide you through the bidding process and cut the jargon while managing your bid, making it as simple as possible to grow your business in the Public Sector
We have managed hundreds, if not thousands of bids for businesses like yours, securing over £37 billion in government contracts for UK businesses.
Get in touch and our team can guide you through the process and help you stop bidding and start winning.