Chapter 20 – The Relationship Between Government & the Private Sector

Understanding the relationship between state and local government and the private sector is crucial because collaboration between the two can achieve significant social benefits. The private sector includes all for-profit businesses that are not owned or operated by the government. This sector ranges from large corporations to small businesses. Large corporations are big companies with many employees and significant resources, while small businesses are independently owned and operated, often with fewer employees and more localized operations. Knowing how these entities interact with the government helps us see how public policies affect business environments and community development. This chapter will explore the following topics: taxes, regulations, procurement, contracting out, and public-private partnerships. Keep reading to learn more.