Sectors of American Society

The four sectors in American society are Government, For Profit or Business, the Nonprofit, and the Family. While we often think of these as separate entities, they are often inter-dependent. Following is a brief description of each of the four sectors in American Society.

The Government Sector:
The Government sector of American Society exists primarily for the purpose of providing structure to a society. This sector is responsible for making and enforcing the laws under which we live. Government is an integral part of our overall economy as well. Government regulates and serves as a watchdog over our environment. It makes the laws that everyone must follow. Economically, government can provide *public goods, regulate production of goods, use its power through taxes, fees, fines, etc., and influence pressure groups. Nonprofit, for-profit, and family groups often influence government as well.

The For-Profit or Business Sector:
The For-Profit or Business sector in our society has a distinct focus on making a profit. It is the primary function of this sector. Business provides private goods and services. It is market-oriented and relies on voluntary payment of the customer. This sector is efficient at meeting the demands of the consumer and emphasizes customer satisfaction. Business will not attempt any activity that it fears will be unprofitable.

The Nonprofit Sector:
The Nonprofit sector can provide public goods as well as private goods. The nonprofit sector focuses on client satisfaction, trust, and service. Nonprofit organizations are not interested in making a profit but merely breaking even in their endeavors.

The Family or Household Sector:
The Family or Household sector is primarily concerned with the well-being of the members of the household. Families take part in activities that benefit others as well as benefit themselves. This is the smallest of the four sectors but collectively, the most influential. It is the family sector that drives the business sector, pressures the governmental sector, and influences the nonprofit sector. Families/households are both for-profit and nonprofit. They are for-profit in an effort to support themselves and to "get ahead." They are nonprofit when they participate in activities that promote the welfare of the family and community.

*Note: Public goods are those goods which consumers cannot be prevented from using nor does one person's use reduce the amount available for use by others.