What defines a public sector organization?

A public sector organization is defined primarily by its ownership and operation by the government. This means that such organizations are created to serve the public interest rather than to generate profits. They typically include entities like government agencies, public schools, and public hospitals, all of which are funded by taxpayer dollars and aim to provide essential services to the community.

The distinguishing factor of public sector organizations is that they are accountable to the government and, by extension, the citizens, rather than to private shareholders. This structure impacts their mission, funding sources, and operational goals, focusing on improving public welfare rather than pursuing profit.

Understanding the core attributes of public sector organizations helps clarify the roles and responsibilities of various entities within the economy, contrasting them with private sector organizations, which are geared towards making profits for their owners and investors.