Public enterprises are businesses owned and operated by the government. These enterprises can provide a wide range of goods and services, from electricity to transportation to healthcare. The goals of public enterprises can vary depending on the country and the sector, but they generally aim to provide affordable services to citizens, generate revenue for the government, and support economic development.
Advantages of public enterprises
One of the main advantages of public enterprises is their ability to provide essential services to citizens that might not be profitable for private companies to offer. For example, public transportation systems often operate at a loss, but they provide a crucial service to citizens who need to get to work or school. Similarly, public healthcare systems may not generate profits, but they ensure that all citizens have access to medical care, regardless of their ability to pay.
Another advantage of public enterprise is that it can be used to promote economic development. Governments can use public enterprises to invest in infrastructure projects or to create jobs in areas that might not attract private investment. For example, a government might create a public enterprise to develop renewable energy sources or to build a new highway.
Challenges Of Public Enterprises
However, public enterprise are not without their challenges. One of the main criticisms of public enterprises is that they can be inefficient and bureaucratic. Because public enterprises are often not subject to the same market pressures as private companies, they may not be as focused on efficiency or cost-cutting measures. Additionally, public enterprises may be subject to political influence, which can make it difficult to make decisions based solely on business considerations.
Another challenge of public enterprises is that they can be costly to taxpayers. Because public enterprises are owned by the government, they are often funded through taxes or government subsidies. If a public enterprise is not profitable, taxpayers may be required to fund its operations, which can be expensive.
Despite these challenges, public enterprise continues to play an important role in many countries around the world. By providing essential services and supporting economic development, public enterprises can help to improve the quality of life for citizens. However, it is important for governments to carefully consider the costs and benefits of public enterprise and to ensure that they are operating in the most efficient and effective manner possible.
features of public enterprises
Public enterprise: Public enterprises are the types of organisations which are owned, controlled and managed by the government, business organisations are owned by either the local, state or federal government and their major objective is to provide social services to the people.
They are associated with such names as authorities, corporations, boards and commissions. Examples of public enterprise are public corporations and companies owned by the government such as the Power Holding Co-operation of Nigeria (P.H.C.N.), the Nigerian Ports Authority (N.P.A.), Nigerian Television Authority (N.TA.), Nigerian Railway Corporation (N.R.C.) and Nigerian Telecommunications Plc. (N.I.T.E.L.)
Characteristics or features of public enterprise
The government provides the capital:
The government provides the necessary capital required to set up public enterprise.
Ownership belongs to the government: Public enterprise is usually set up by Acts of legislation and the enterprise belongs to the government.
The objective is to provide social services: The major reason for setting up public enterprise is to provide social amenities and services to people at a reduced cost.
Management is accountable to the government: The management of the public enterprise is directly accountable to the government that set up the enterprise.
Government and taxpayer bore the risks: The risks associated with a public enterprise are usually borne by the government and taxpayers who provided the capital for setting up the enterprises.
Board of Directors manage the business: The public enterprise is managed by a board of directors appointed by the government.
Public enterprise is a legal entity: Public enterprise is a corporate body or a legal entity, meaning that it can sue and be sued in its own right.
- BALANCED DIETS
141. LACTATION DIETS
- RINDER PESTS
You must log in to post a comment.