On the basis of ownership, enterprises are generally classified into three sectors:
- Private Sector
- Public Sector
- Joint Sector
Private sector enterprises belong to individuals or a group of individuals. It is mainly guided by the motive of profit. Retail shops, wholesale trade, small scale industries, companies, farms, and many other activities come under private sector. Many large companies such as Hindustan Lever limited, Maruti Udyog Ltd, Reliance Industries Ltd. etc. come under the private sector.
That sector of production which is under complete control of government is called public sector. Public sector enterprises enable the government to control the economy for the benefit of the people. Railways, Post and Telegraph, Steel Authority of India limited, Indian oil Corporation, National Thermal Power Corporation are some examples of public sector enterprises.
The term joint sector refers to the enterprises owned and managed jointly by the private sector as well as public sector enterprises. Reliance Petro Chemical Limited (RPCL), Power Trading Corporations are some examples of joint ventures in India.