Difference between public and private enterprises

Difference between public and private enterprises

Owner ship – Public sector / company owned by government capital but a private company have one or more member to invest.

Management – Public Company full manage by government policy with in frame work. Some- time this situation become rigid, depressed by lot of rules and have a little scope. But a private company managed by owner or investor & has a wide area to work.

public and private enterprises

Objective – Public sector has a social objective & always works for the society benefit or social economic area. But a private company always formed for economic goal or profit.

Capital – Public company formed fully by government or at least 51% stake in any company. In private, it’s fully financed by its investor or a majority of group.

Flexibility – A public company always follow the rules and regulation which is lead down by government so there are less flexibility but in private company, they are established for economic goals or profit and they are more flexibility for future operation.