Private sector aims

Independent shops are part of the private sector

The UK economy is a mixed economy [Mixed economy: An economy with both a public and private sector. ]. This means that it has a public sector [Public sector: Organisations controlled by the Government on behalf of the general population. ], and a private sector [Private sector: Businesses in this sector are owned by shareholders, individuals, sole traders or partnerships. ].

The aim of a business in the private sector is to survive by making a profit. This may be a sole-trader working alone, like a newsagent, or thousands of shareholders in a large Public Limited Company.

Businesses gain a larger market-share [Market-share: Percentage of overall sales in an industry. ] by increasing the sales of their products against competitors. This may involve reducing prices. To win the loyalty of customers and encourage repeat sales [Repeat sales/business: Customers returning to buy from the same business. ], businesses need to be reliable and provide a quality service to their customers.