Private sector refers to business owned and manege by individuals which are not government funded, private sector include business, companies, commercial banks etc which are owned and manege by private individuals who has nothing to do with government for the purpose of profit making
The role of private sector in developing the economy of any country is very crucial and important as the role of government in society is for protection of life and property and creating the right environment for business to strive
All over the world it's private sector that has helped the economy of nations, private sector involvement is needed for economic stabilization as government only can't do this alone
Private individuals are encouraged to start up business for the purpose of profit making in so doing they're in turn creating wealth
Let take an example of say an individual who is interested in sports business and brings out money to setup a football team, first the person will start by employing young youths and them of the street and labour market and at least for a football team to be set up you must need at least fifty individuals from the players to the couching Crew to the backroom staff then the team that has been setup will need a stadium where they will be playing their match's so they will set up a structure in form of a stadium and this newly built stadium needs to be cleaned and and we'll taken care of so more people are to be employed again and salaries will be paid to them at the end of the month
So while the owner of the business who is profit oriented gets his return for investment when the team wins a league title or from transfer of players and from tickets sold to fans who come and watch their match's he has created wealth to his employees by way of paying them salaries which in turn translate to economic growth
