N4 BUSINESS IN ACTION/N5 UNN4 BUSINESS IN ACTION/N5 UNDERSTANDING BUSINESSDERSTANDING BUSINESS

HOW DO BUSINESSES HOW DO BUSINESSES OPERATEOPERATE

Public and Third Sector BusinessesPublic and Third Sector Businesses

LEARNING INTENTIONS AND LEARNING INTENTIONS AND SUCCESS CRITERIASUCCESS CRITERIA

LEARNING INTENTIONS:LEARNING INTENTIONS:

I understand the types ofI understand the types of

business organisations that business organisations that

exist in the Public and Third exist in the Public and Third

Sectors.Sectors.

SUCCESS CRITERIA:SUCCESS CRITERIA: I can describe the different I can describe the different

levels of government in the levels of government in the Public SectorPublic Sector

I can identify some of the I can identify some of the services provided by services provided by organisations in this organisations in this Sector and how these Sector and how these organisations differ from organisations differ from those in the Private Sector.those in the Private Sector.

I can describe the types of I can describe the types of business organisation in business organisation in the Third Sectorthe Third Sector

PUBLIC SECTORPUBLIC SECTOR

In addition to businesses which try to make as much profit asIn addition to businesses which try to make as much profit aspossible, the following types of organisations can normally bepossible, the following types of organisations can normally befound locally and nationally, providing advice and essentialfound locally and nationally, providing advice and essentialservices to members of the public that businesses might not beservices to members of the public that businesses might not bewilling to offer or would charge too much to provide.willing to offer or would charge too much to provide.

PUBLIC SECTOR IS MADE UP OF:PUBLIC SECTOR IS MADE UP OF:Westminster Government }Westminster Government }Scottish Parliament } Scottish Parliament } CENTRAL GOVERNMENTCENTRAL GOVERNMENT

Local Councils Local Councils LOCAL GOVERNMENTLOCAL GOVERNMENT

CENTRAL GOVERNMENTCENTRAL GOVERNMENT

Central GovernmentCentral Government

The Westminster (Houses of Parliament) and theThe Westminster (Houses of Parliament) and the

Scottish Parliament provide important nationalScottish Parliament provide important national

services such asservices such as HealthHealth TransportTransport DefenceDefence

CENTRAL GOVERNMENTCENTRAL GOVERNMENT

Public Corporations:Public Corporations:

These are companies that are owned andThese are companies that are owned and

controlled by central government. Thecontrolled by central government. The

government appoints a Chairperson and Boardgovernment appoints a Chairperson and Board

of Directors to run the company on theof Directors to run the company on the

government’s behalf. Examples of Publicgovernment’s behalf. Examples of Public

corporations include the BBC and Royal Mail.corporations include the BBC and Royal Mail.

LOCAL GOVERNMENTLOCAL GOVERNMENT

A local council aims to meet the needs of local A local council aims to meet the needs of local

people and businesses. Services provided are people and businesses. Services provided are

things like Education and Leisure, Housing, things like Education and Leisure, Housing,

Social Work, Environmental HealthSocial Work, Environmental Health

NOT FOR PROFIT!NOT FOR PROFIT!

Public Sector organisations do not aim to makePublic Sector organisations do not aim to make

profit – rather they are required to provide the profit – rather they are required to provide the

most efficient service possible most efficient service possible within allocated within allocated

budgets.budgets.

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Complete Worksheet 5 on the computer.Complete Worksheet 5 on the computer.

THIRD SECTOR BUSINESSES

Businesses in this sector Businesses in this sector exist to help a causeexist to help a cause in in

some way eg Charities, Clubs and Social some way eg Charities, Clubs and Social

Enterprises. They do not exist to make a profit,Enterprises. They do not exist to make a profit,

although they may have a surplus of income overalthough they may have a surplus of income over

expenditure. expenditure.

What do you think will happen to this surplus?What do you think will happen to this surplus?

CHARITIESCHARITIES

Charities are often set up as trusts with noCharities are often set up as trusts with no

individual owner, and overall management andindividual owner, and overall management and

control is undertaken by unpaid trustees.control is undertaken by unpaid trustees.

TRUSTEES: people who are placed in aTRUSTEES: people who are placed in a

position of trust with the responsibility for position of trust with the responsibility for

looking after the interests of others.looking after the interests of others.

CLUBSCLUBS

Clubs are voluntary organisations which are runClubs are voluntary organisations which are run

and staffed by volunteers. Examples include theand staffed by volunteers. Examples include the

Scouts, youth clubs, Brownies, sports clubs. Scouts, youth clubs, Brownies, sports clubs.

They bring together people with similar They bring together people with similar

interests. They are run by a committee of interests. They are run by a committee of electedelected

volunteers taken from the club membership.volunteers taken from the club membership.

SOCIAL ENTERPRISESSOCIAL 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 SOCIAL ENTERPRISE EXAMPLESEXAMPLESA 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 SOCIAL ENTERPRISE EXAMPLESEXAMPLESCOMMUNITY 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 SOCIAL ENTERPRISE EXAMPLESEXAMPLESCREDIT 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 Let’s watch a short video about Social Enterprises in LondonSocial Enterprises in London

www.youtube.com/watch?v=3QRZTEraCwEwww.youtube.com/watch?v=3QRZTEraCwE

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Complete Worksheet 6 on the computer.Complete Worksheet 6 on the computer.