Difference Between Public Administration And Business Administration

This article will discuss the difference between public administration and business administration.

The definition of administration according to experts is as follows:

Mark defines administration as actions taken in pursuit of a conscious goal. Thus, the administration is the systematic arrangement of affairs and the calculated use of resources aimed at achieving what one wants.

Frederic k Lane defines administration as the organization and maintenance of human and fiscal resources to achieve group goals. A complete definition for public administration is however difficult to achieve because of the many tasks that fall under it.

According to Woodrow Wilson, public administration is the detailed and systematic application of the law. We can also say that public administration simply contains policies, practices, rules, and regulations, etc., in action.

Public administration cannot be separated from the social and political system. Therefore, another definition appears given by FA Nigro which argues that public administration is a cooperative group effort in public settings.

Business administration is a specialized field of study that studies everything related to the operational activities of businesses and companies.

Difference Between Public Administration And Business Administration

Experts both professors and scholars describe some of the differences between public administration and business administration, as follows:

Regulatory agency

Public law will regulate public administration, meaning that the government will play a role in managing public administration. Meanwhile, corporate, commercial, and private law will manage business administration for business purposes.


You must be aware that the goals of these two types of administration are very different. Public administration has a goal not on profit, this administration emphasizes social and political. While business administration emphasizes as much profit as possible for the company or organization.


Public administration will depend on public policy or society at large, while business administration will depend on privacy policy and cater to the demands of private companies.

Source of Capital

These two types of administration have very different sources of capital. Public administration gets its source of funds from public taxes, while business administration gets its capital from private sources such as stocks, bonds, banks, and investments. The public administration will be responsible to the public while the business administration will be responsible to the investors.

Measurement Ability

As we know that public administration will be very difficult to measure because it serves the law, society, and order. Meanwhile, we can measure business administration through the value of efficiency, profit, and loss.

Operational Method

Public administration uses a very bureaucratic operational method so that a lot of public administration activities will be devoted to recording. Meanwhile, business administration is business-oriented, so it is not too bureaucratic.

Environmental Pressure

The external environment such as social and political will affect the administration because the public administration is responsible for these domains. Meanwhile, business administration will not experience significant environmental pressures.

Morals and Ethics

Morals and ethics such as honesty, discipline, rights, and obligations are the main things that workers must have and the institution must fulfill. In public administration, morals and ethics are the main things they emphasize, while in business administration this is not the main thing but they still need it.

Theories to scientists

Public administration differs from theory in business administration, so careers in public administration and business administration are different. We have previously discussed that the strategies and objectives of the two types of administration are different, so the conceptual framework will apply.

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