The division of the economy based on sectors of industry is something that most of us are familiar with. It divides the economy into the following:
- Primary sector: raw materials
- Secondary sector: finished goods
- Tertiary sector: service sector
- Quaternary sector: education & research
Another extremely useful perspective is the one which arises from the type of ownership which consists of the following:
- The first sector: private sector
- The second sector: public sector
- The third sector: voluntary/non profit sector
We use this division in order to conceptualize the economy from different perspective. It assists researchers and analysts while also contributing to discussion and education about how we structure our society.
THE FIRST SECTOR: PRIVATE SECTOR
The first sector is what most of us associate with the economy. It consists of the following:
- Corporations
- Sole proprietorships
- Partnerships
- Limited Liability Companies
THE SECOND SECTOR: PUBLIC SECTOR
In the second sector we find organizations that are publicly owned:
- National government
- Local government
- Political Parties
THE THIRD SECTOR: VOLUNTARY SECTOR
The voluntary sector also known as non-profit sector consists of entities which do not distribute profit and receive voluntary work. These entities/institutions exist with the purpose to increase the common public good. It consists of the following:
- Charities
- Voluntary organizations
- Social enterprises
- Non-government organizations
- Think tanks and private research institutes
