What is the motive of public sector enterprises?
Answers
Public enterprises are autonomous or semi-autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities.”
Public enterprises as a form of business organisation have gained importance only in recent times. During twentieth century various governments started participating in industrial and commercial activities. Earlier, the role of government was limited only to the maintenance of law and order. The policy of laissez faire was practiced in most of the countries.
The development of industries was left to the judgement of private entrepreneurs. During twentieth century, outbreak of two world wars, depression in many countries and social evils of Industrial Revolution of earlier times compelled state governments to participate in planning and developing industrial structure of their countries.
Industrial Revolution helped all-round growth of industries. Private entrepreneurs started working only for profit motive. The exploitation of consumers and workers by private entrepreneurs became the order of the day. Russian Revolution gave a lead to new economic and political system in the world. State Governments started realising their social responsibility towards people.
The outcomes of all these factors were the active participation of governments in industrial and commercial enterprises. At present, governments of almost all countries in the world are participating in economic activities in one or the other way.
Answer:
social welfare and security