Private Enterprise

Private Enterprise, economic activity in the private sector, as opposed to the public sector (federal, state, and local government). Private enterprise is undertaken by private individuals who hope to realize a profit from their activities and who bear any risk associated with those activities. Proponents of private enterprise believe that it promotes individual ingenuity and efficiency, particularly when such enterprises are free of government regulation. See also Capitalism; Laissez-Faire; Free-Market Economy.