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In the UK, all organisations can be classified into these sectors: public, private and what is known as the third sector, which refers to charities and other voluntary bodies.
What is the private sector?
In the private sector, businesses are privately owned, for-profit businesses that are not affiliated with the government. Most businesses fall under the private sector.
Approximately six million private businesses employ more than 27 million people in the UK.
Private sector business examples
Private sector companies cover any type of business including:
- Manufacturing and engineering companies
- Health and beauty companies
- Restaurants, hotels, and catering services
- Accountants, insurers and solicitors
- Online and physical retailers
- Media organisations
- IT and software developers
What is the public sector?
The Public Sector is an umbrella term that refers to organisations that provide free or subsidised services to the public, typically funded by the taxpayer.
The Public Sector employs over 5 million people, spends £235 billion and represents almost 40% of GDP. Additionally, the NHS is the largest employer in Europe.
Public sector organisation examples
Central Government
It is a unitary state that governs the UK. In other words, the UK is governed as a single entity. However, the Central Government can also delegate authority to local governments.
NHS
The NHS budget in the UK is set by the central government, allocated to the devolved governments (Scotland, Wales and Northern Ireland), and each government is responsible for its own healthcare spending.
It includes primary care, hospital, social care and GP services.
Local Government
For administrative reasons, the UK has local authorities.
The local authority is given the power to choose how to spend public money in its geographical area.
Local government includes councils, police, fire services, and housing associations.
Schools
As a devolved matter, education in the United Kingdom is organised and delivered by each of the separate governments.
The education sector oversees schools, higher education, nurseries and early years, as well as adult education such as traineeships and further education.
How do the public and private sectors work together?
Private sector companies are hired by public sector organisations to provide products or services. Some examples are:
- Providing technological solutions and resources through a private sector company
- Building or decorating public buildings with the help of private contractors
- For public sector workers travelling, private sector accommodations can be used as a base of operations
Public sector procurement considerations
Public sector procurement differs from private sector procurement mostly in terms of how it is funded and regulated.
Funding
The budgets for public sector departments are much more rigid than those for private companies
Public sector organisations can also lose funding, which can delay procurement processes.
Laws and regulations
Public and private procurement have regulations, but public procurement has a broader scope and is often more stringent
When a contract exceeds a threshold value, these regulations apply
Anything over a certain amount is seen as a high-value contract. These thresholds are £213,477 (inc VAT) for Supplies & Services and £5,336,937 (inc VAT) for Works.
Transparency
Transparency plays an important role in regulatory obligations.
Public service procurement must be transparent.
Accurately documenting procurement information is crucial, and will include:
- price,
- available contracts,
- planning,
- budgets, and
- appointment of contractors.
A procurement process must also ensure that all interested parties have an equal chance of winning the contract.
Special treatment should not be given since this prevents a level playing field for all suppliers in the procurement process.
There is no requirement for private sector companies to provide equal contract opportunities.
Motivators
When it comes to the public sector ensuring taxpayers money is spent efficiently and transparently is a priority
The Social Value Act (2012) has also made social value a major factor in public procurement. In order to ensure that their procurement approaches achieve economic, environmental, and societal goals, organisations must take these factors into consideration before proceeding.
Communication should be directed to the correct people
It is just as important to target the right people as it is selecting the right organisations, areas, and mode of communication.
This is often the reason that marketing campaigns are not successful.
Targeting the right public sector prospects usually means considering an entire group of people that may be involved with and use the service or product.
This includes all those involved in day-to-day activities, as well as those with budgets and influence. Essentially anyone responsible for the delivery of their organisation’s services.
When it comes to smaller organisations like GP surgeries, there is usually one specific person that is the best point of contact for the majority of marketing.
It will ultimately depend upon the nature, value, and type of product or service being offered, as well as the type of organisations involved, to determine who to contact.
Tips for successful public sector marketing
- FInd a targeted public sector database that includes the types of public sector organisations you most want to reach,
- Investigate each organisation to find out what they need, and how they advertise opportunities. Procurement strategies can be found online which outline how and what public sector organisations will purchase,
- Information about what will be procured in advance can be found in contracts registers or procurement plans,
- Ensure your company’s policies are aligned with public sector aspirations such as environmental protection and equal opportunities.
With More Than Words Marketing’s public sector database, you can find accurate and up-to-date contact details for public sector decision makers, segmented by the type of public body they work for and their funding budget.
Contact us to tell us which decision makers you want to reach and what you hope to achieve with your bespoke public sector database.You can reach us at 0330 010 8300 or email info@morethanwordsuk.co.uk
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