Distinction between Public Enterprises and Private Enterprises
The following are the fundamental difference between public enterprises and private enterprises.
Public Enterprises
- These are established with the objective of rendering service to the people.
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- It minimizes concentration of wealth in the hands of few persons.
- These are formed with social interest.
- it prevents regional imbalanced growth of industries.
- It is free from exploitation motive and as such the consumers and the employees are given a fair dealings.
- There is no shortage of capital to undertake risky and costly projects.
- It undertakes all sorts of industries irrespective of its nature.
- It can be operated on large scale and can attain gigantic size.
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Private Enterprises
- These are established with the predominant objective of earning profit.
- It lends to concentration of wealth in the hands of few persons.
- These are formed with personal interest.
- It develops regional imbalances in the growth of industries.
- It is not free from exploitation motive and the consumers and the employees are not given a fair dealings.
- It feels insufficiency of capital to undertake risky and costly projects.
- It undertake those consumer goods industries where profit earning scope is high.
- It can be operated on large scale and cannot attain gigantic size.