Nebbia v. New York

Private enterprise is any type of economic activity that is undertaken with privately owned capital and with the aim of earning an income for private interests. The capital may be owned by an individual, a partnership, or a corporation. A company which has issued shares of stock is referred to as a "public" company, but it is public only in the sense that anyone can buy shares. For the purposes of this discussion, a "public" company is another example of private enterprise.

By contrast, the public sector, though it too takes part in economic undertakings, seldom does so for profit-making purposes. A government typically funds its activities through taxation or defrays costs by means of a user's toll, as is the case on many highways. There is a considerable gray area between public and private enterprise in joint-venture operations such as airports.