Define public enterprise.
1 Answer
Public enterprises is a business organization who is wholly or partly owned by the state and controlled through public authority. The aims of public enterprises are to provide public utilities like drinking water, communication, fuel, electricity, transport facilities etc. at a reasonable price. The public enterprises are established, owned, managed and controlled by government for the purpose of providing goods and services to the people at reasonable prices.
According to A.H. Hansen, a public enterprise denotes “state ownership and operation of industrial, agricultural, financial and commercial undertakings”
According to N.N. Malaya, “Public enterprises are autonomous or semi-autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial undertakings”
Public enterprises invest a large amount of money in establishing a large scale of industries. Public enterprises are main instrument or tool to support a government in developmental planning. They work according to government planning. Public enterprise invests a large sum of money in establishing the big size of the industry we establish a larger number of people will get employment opportunities. Public enterprises are mainly concerned to provide service even though they are profit organization.
Nepal Telecom Co.Ltd. Nepal Airlines corporative, Nepal oil corporative, Nepal Electricity Authority, Dairy Development Corporation, Salt Trading corporation, National Trading corporation are some examples of public enterprises operating in Nepal.