Sources of Finance

A1 Finance: sources of finance

Public sector – the segment of a (national) economy owned by the government which engaged in the activities of providing government goods and services to the to the general public. The public sector focused on the general purpose and providing services for their citizens. Politics can have a huge impact on the public sector because the public sector is accountable to the public they produce a lot of paperwork to justify their actions. It can take some time but goods and services from the public sector are quite safe.

Private sector – the segment of a (national) economy that is owned, controlled and managed by private individuals or enterprises. The private sector is focused on making profit, it consists of multiple components like shops, offices etc. in the private sector there can be a lot of competition which can influence the prices and quality of the products.

public sector	Private sector
Taxes for funding	Revenue for funding
General purpose (citizens)	Profit
Mainly monopoly	Mainly competition
Accountable to public	Market forces
Exclusive market	Free market

Similarities:

·         Both deliver goods and services.

·         Both have to operate within framework of the law.

·         Both employ citizens.

·         Both are customer service orientated.

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Example:

*private sector starts losing money* = keep it going?! Cuts bankruptcy

*public sector starts losing money*   = keep it going!   Cuts raising taxes other funds

Not every (important) service or good is profitable/interesting for the market.

Weaker parts of society have to be protected.

Politics can cause illogical choices/actions and a shift of course every election.

Some critical services and processes have to be kept in public hands.

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·       -Charitable non-profit organisations

The welcome trust

Creative Europe desk UK

The UK charity for cinema

·       -Publicly owned/publicly funded companies

British film institutes

·       -Publicly owned/commercially funded companies

Channel 4

·      -Organisations that provide funding for feature films

BBC Films

Northern island screen

·      -Specialised in crowd funding

Indiegogo

Kickstarter

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