Question

which public sector enterprise is powered by government and enjoys the operational flexibility just like a private Enterprise? how does this happen? also explain the main characteristics of such Enterprises.​

Answer 1

Answer:

Around the world, as economies developed, governments left business activities to individuals and private organizations while keeping essential services. Over years, many governments observed that the private sector avoided areas with long gestation periods like oil exploration, infrastructure development, etc.

Further, industries developed around region rich in natural resources, skilled labor, and proximity to a market, leading to a regional imbalance. Eventually, this led to the evolution of public enterprises where the government started participating directly in businesses. Hence, a Public Enterprises or a Public Sector Enterprise is a business unit which the government owns, controls, and manages.