- The Difference Between Private Enterprise And Public Enterprises
- Business Name Enterprise Or Enterprises
The private sector or enterprise are the businesses that are owned by a private group or an individual. Different types of businesses under private enterprises are a partnership, sole proprietorship, cooperative, and company. What is Public Enterprise? The sector or enterprises are the businesses that are owned and controlled by the government. It will have less expenses than a larger company. Because of this, your goal should be to increase revenue. While many businesses try to cut costs, your costs are probably already low. As such, a major difference between a micro business and a small business is the.
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In this short article we are going to take a look at the main differences between a state owned enterprise and a private enterprise. In doing this, we will simply take a look at the characteristics of each.
The Difference Between Private Enterprise And Public Enterprises
A state owned enterprise, as the name suggests is one that is owned and managed by the state whereas a private enterprise is one that owned and managed by private individuals.
Business Name Enterprise Or Enterprises
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Differences between state owned enterprises and private enterprises
- A state owned enterprise is set up by the government whereas the private owned enterprise is set up by private people.
- State owned enterprises are set up through an act of parliament, but private enterprises are set up through the registrar of companies.
- State owned companies are owned and controlled solely by the state, but private companies are owned and controlled by private individuals.
- The aim of the state owned companies is to provide essential services to the people. It is not set up solely to make profit. However, the private enterprises are set up with the sole aim of making profit for their owners. Profit making is the sole aim of private enterprises.
- When state enterprises incur losses, these losses are borne by the state, but the losses incurred by private enterprises are borne by the private individuals.
- When state enterprises make profit, the profit is paid into consolidated fund; on the other hand when private enterprises make profit, the profit is shared by the owners of the company.