Definition of private agency

The concept that concerns us in this review It is made up of two terms of extended use. On the one hand, the concept of agency It is used in our language to designate that company whose job is to manage the affairs of third parties or provide services; meanwhile, we use the term private or its feminine private to designate everything that corresponds to the family, personal sphere, or failing that, to what is not owned by the state.

Then, A private agency will be that company, a company that carries out a commercial activity without the intervention of the state at any level. That is, in all the work that is carried out the state or government On the other hand, it does not participate in management, decision-making or in obtaining financial returns, the latter being only for the owners of the private agency.

The private agency can be owned by a single person or there can be several shareholders of the same who are finally distributed the profits obtained.

As we have already pointed out, from the opposite side of this type of agencies, government agencies should be placed, those that are managed and controlled by the state.

It is worth noting that in the economic system capitalist, which is where most of the world lives today, much of the economy is managed by agencies or private companies, being they the engine of the economic activity, and of course, depending on the level: good, bad or regular, on the situation in which they are, the progress of the economy of the nation.

Another issue that we cannot ignore when addressing this issue is that generally private agencies or companies are associated with good economic performance, as opposed to to what happens with the companies managed by the state, which tend to be in deficit in most cases, or for now it is more frequent that they present problems economic.

One of the reasons for this situation is usually the corruption that prevails in the administration from the same. The officials who administer them use them as personal boxes instead of managing them with the goal to achieve competitive companies.