Importance of public enterprises

Importance:

1. Planned development: Its main aim is to promote economic and social development in the weaker section. It helps to run all the works of development in an efficient manner. It follows government plans and policies. It generally focuses on private sector. It also earns profit. It provides planned development by setting up industries too.

2. Balanced development: Development works are done in planned and balanced way. It also provides decentralization of industries. It tries to develop all regions in harmonious ways. Balanced development is the main aim of public enterprise.

3. Accelerating the rate of economic growth: In developing countries, increasing the rate of economic growth always gets the first priority. It tries to remove deficiency of economy. It provides infrastructural facilities for economic development. It provides employment opportunities. Government invests the money. Amount of capital, technical empowerment and other facilities can be easily arranged by the government.

4. Public utilities: Public enterprises provide the utility of transportation, water supply, irrigation, electricity, communication, education, health facilities and so on to the general public.

5. Supply essential goods and services: public enterprise provides goods and services to the public at reasonable price. The government helps in manufacture and distribution of goods. These types of services are not done for earning profit.

6. Provide job opportunities: They help to create the employment opportunities in the society and work as the model employer. They help in uplifting the living standard of the people.

7. Reducing economic inequality: It removes economic inequality. It helps to develop different regions of the country. Therefore, it maintains living standard of the public.

8. Establishment of social welfare: They help in planned development and balanced development of the country. They also try in accelerating the rate of economic growth. They are also established for supply essential goods and services. They help in providing job opportunities to many people. They further help in reducing economic inequality. Thus, they establish social welfare.