Question

Differentiate small scale industries and public sector enterprises

Answer 1

A public sector enterprise may be defined as commercial or industrial undertaking owned and manged by the government with a view to maximise social welfare and uphold in public interest. Public enterprise consists of private sector enterprises such as banks.

Small scale industries employ less number of workers and capital. Most of the work is done by manpower and small machines and tools.

Answer 2

Small scale industries

1. They employ less number of persons and capital.

2. Most of the work is done with small machines, tools and by manpower.

3. Less raw materials are used and the production is also less.

4. They belong to the private sector and are owned by individuals.

5. They aim at gaining profits.

Public sector enterprises

1. They employ more people and capital.

2. Work is mostly done by machines and labourers.

3. Larger amount of raw materials are used and there is mass production.

4. They belong to the public sector are owned by the government.

5. They are financed from government funds.

6. They work for public welfare. They are not guided by profit motive.

7. They concentrate on providing public utility services like telecommunication, transport and electricity.

8. They are accountable to the legislature. They are governed by the public policies formulated by the government.