HOW DO BUSINESSES
OPERATE
Public and Third Sector Businesses
N4 BUSINESS IN ACTION/N5
UNDERSTANDING BUSINESS
LEARNING INTENTIONS AND
SUCCESS CRITERIA
LEARNING INTENTIONS:
I understand the types of
business organisations that
exist in the Public and Third
Sectors.
SUCCESS CRITERIA:
 I can describe the different
levels of government in the
Public Sector
 I can identify some of the
services provided by
organisations in this
Sector and how these
organisations differ from
those in the Private Sector.
 I can describe the types of
business organisation in
the Third Sector
PUBLIC SECTOR
In addition to businesses which try to make as much profit as
possible, the following types of organisations can normally be
found locally and nationally, providing advice and essential
services to members of the public that businesses might not be
willing to offer or would charge too much to provide.
PUBLIC SECTOR IS MADE UP OF:
Westminster Government }
Scottish Parliament
} CENTRAL GOVERNMENT
Local Councils
LOCAL GOVERNMENT
CENTRAL GOVERNMENT
Central Government
The Westminster (Houses of Parliament) and the
Scottish Parliament provide important national
services such as
 Health
 Transport
 Defence
CENTRAL GOVERNMENT
Public Corporations:
These are companies that are owned and
controlled by central government. The
government appoints a Chairperson and Board
of Directors to run the company on the
government’s behalf. Examples of Public
corporations include the BBC and Royal Mail.
LOCAL GOVERNMENT
A local council aims to meet the needs of local
people and businesses. Services provided are
things like Education and Leisure, Housing,
Social Work, Environmental Health
NOT FOR PROFIT!
Public Sector organisations do not aim to make
profit – rather they are required to provide the
most efficient service possible within allocated
budgets.
TASK
Complete Worksheet 5 on the computer.
THIRD SECTOR BUSINESSES
Businesses in this sector exist to help a cause in
some way eg Charities, Clubs and Social
Enterprises. They do not exist to make a profit,
although they may have a surplus of income over
expenditure.
What do you think will happen to this surplus?
CHARITIES
Charities are often set up as trusts with no
individual owner, and overall management and
control is undertaken by unpaid trustees.
TRUSTEES: people who are placed in a
position of trust with the responsibility for
looking after the interests of others.
CLUBS
Clubs are voluntary organisations which are run
and staffed by volunteers. Examples include the
Scouts, youth clubs, Brownies, sports clubs.
They bring together people with similar
interests. They are run by a committee of elected
volunteers taken from the club membership.
SOCIAL ENTERPRISES
Social Enterprises are set up to benefit people in
society.
They MUST use all of their profits and money
from the sale of assets (if it is closed down) for
the purpose of its social mission.
SOCIAL ENTERPRISE
EXAMPLES
A co-operative is a group of people (known as
MEMBERS) who want to work together in a
jointly owned social enterprise organisation in
order to help them meet their common needs.
Examples of co-operatives include the
Co-operative grocery store, insurance company
and travel firms.
SOCIAL ENTERPRISE
EXAMPLES
COMMUNITY BUSINESSES
These are social enterprise organisations that are set up
in a particular geographical area and focus on
PROVIDING GOODS AND SERVICES to that area.
They are trading organisations which are set up, owned
and controlled by the local community and which aim
to be a focus for local development and create self
supporting jobs for local people.
SOCIAL ENTERPRISE
EXAMPLES
CREDIT UNIONS
Credit unions are finance co-operatives that help
people to SAVE and BORROW money at
reasonable rates.
Let’s watch a short video about
Social Enterprises in London
www.youtube.com/watch?v=3QRZTEraCwE
TASK
Complete Worksheet 6 on the computer.