difference between public enterprises and private enterprises.
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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.
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.
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.
Explanation: