A private sector is a group of independent organizations that is part of the economy (Borish, Noel and The World Bank 1996). They are also considered to be the business sector. The majority of business organizations in the private sector deal with market demands and needs by providing products and professional services. A big percentage of this sector is manufacturing and production followed by the service providers. The manufacturing industry has wide coverage in the market catering to other businesses, households, government institutions, and end-users. Since a lot of private organizations have their own departments that run the business, the system of operation procedures and development is made internally. However, the manufacturing or production industry also seek services from other service providers such as outsourcing services for manpower and insurance services for hospitalization and medication.
Transactions and dealings in the private sectors are considered as investments that will gain revenue. Since the private sector has more control over the prices and services that are available in the market (Dollery and Wallis p57 2003), they have more bearing in the balance of the economy. The prices of their products and services are based on the current value of the currency and target profit.
The majority of the employees in the private sector are paid a minimum wage that is set for their job description or based on the set standards of the government. Aside from the fact that organizations from the private sector operators to generate revenue that can sustain salary wages for their employees, employees from the private sector also get a lot of benefits from the organization they work with. One of the benefits they get is medical and life insurance. .