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Public Sector Ass 2

Public sectors typically evolve from existing government structures and services, rather than being established from nothing. Public enterprises are business organizations owned and operated by governmental authorities to provide essential services and goods. They are state-owned and state-controlled, receiving most of their funding from the government. Public enterprises aim to both serve public interests and operate commercially for profit. They provide monopoly services in some sectors and act as agents for implementing government policies.

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64 views1 page

Public Sector Ass 2

Public sectors typically evolve from existing government structures and services, rather than being established from nothing. Public enterprises are business organizations owned and operated by governmental authorities to provide essential services and goods. They are state-owned and state-controlled, receiving most of their funding from the government. Public enterprises aim to both serve public interests and operate commercially for profit. They provide monopoly services in some sectors and act as agents for implementing government policies.

Uploaded by

kareemmalik74
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NO PUBLIC SECTOR IS ESTABLISHED FROM NOTHING. DO YOU AGREE ?

Yes, I agree. Public sectors typically evolve from existing government structures and services.

Public enterprises hold significant importance in the field of business management practices. They
represent business organizations owned and operated by governmental or public authorities. These
enterprises are essentially state-owned and state-controlled, with the majority of their investments
coming from the government.

The word enterprise stand for business or commercial organization. The motive in any business or
commercial activity is to make profit. Thus, the public enterprise is an embodiment of values that are
important to both public and commercial organizations.

Harisen (2010) defines public enterprise as state-owned and operation of industrial, agricultural,
financial and commercial undertaking. Malaya (2006) defines it as autonomous or semi-autonomous
corporations and companies established, owned and controlled by the state and engaged in industrial
and commercial undertaking or activities.

Characteristics of Public Enterprises

 Autonomous or semi-autonomous organization: It's autonomous when it does not work


directly under the control of government. Semi-autonomous organizations are those that are
established under statutes or Company and Allied Matters Act. Both could control or manage
their internal activities with little or no government interference.
 Control by the State: The activities of public enterprises are controlled by the government that
own them as they are financed by that government.
 Rendering of Essential Services: The primary purpose for which public enterprises are
established is to provide basic or essential services that will help improve the standard of living
of the people and to accelerate the rate of employment.
 Usefulness to various sectors: The goods produced or services provided by the public
enterprises do not exclude any class of people in the society but are made available to all
sectors of the economy.
 Monopoly Enterprises: In some specific cases, the private sector is not allowed to own certain
organizations or take part in the provision of a given service. As such, the public enterprises
enjoy monopoly in operation.
 A direct channel for use of foreign fund: Sometimes, the government receives foreign assistance
from industrially advanced countries for the development of industries. These funds are
disbursed through public enterprises.
 Public Accountability
 Agent for implementing government policies

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