N4 BUSINESS IN ACTION/N5 UNDERSTANDING BUSINESS HOW DO BUSINESSES OPERATE Public and Third Sector Businesses

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 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 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 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 Scottish Parliament provide important national services such as services such as Health Health Transport Transport Defence Defence

CENTRAL GOVERNMENT Public Corporations: These are companies that are owned and controlled by central government. The controlled by central government. The government appoints a Chairperson and Board government appoints a Chairperson and Board of Directors to run the company on the of Directors to run the company on the government’s behalf. Examples of Public government’s behalf. Examples of Public corporations include the BBC and Royal Mail. 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

TASK Complete Worksheet 6 on the computer.