A business corporation established and operated by the government is a public enterprise. Governments of all countries of the world participate in industrial and commercial activities. The primary objective of government undertaking in such activities is to provide public welfare or services to its citizens. In another hands, commercial activities of government helps to save the general public from private exploitation and protect the nation.
Public enterprises are the autonomous organizations established owned, managed and controlled by government for public welfare. They are also called government corporations; state enterprises nationalized industries, government undertaking etc. in such enterprises, the government has either full ownership or partial ownerships. The investment range of government is from 51% to 100%. The aims of public enterprises are to provide public utilities like drinking water, communication, fuel, electricity, transport facilities etc, at reasonable price. In Nepal, Nepal Electricity Authority, Dairy Development Corporation, National Trading Corporation etc are some example of public enterprises operating in Nepal
The definitions of public enterprises given by different famous scholars are presented below:-
1. According to M.N. Mally," Public enterprises are autonomous or semi-autonomous corporation companies established, owned, and controlled by the state."
2. According to A.N. Agrawal," Public enterprise are established, controlled and operated by the government ti produce and supply goods and services to the society."
3. According to World Book, " state owner enterprises are financially autonomous and legally distinct entities wholly or partly owned by ….government."
Characteristics of Public enterprises
a) Government ownership
b) Government management and control
c) Service motive
d) Public accountability
e) Monopoly enterprises
f) Financial autonomy
g) Separate legal entity
h) Perpetual succession
i) Government business
Important of Public enterprises
a) Economic development
b) Providing public utilities and facilities
c) Establishing basic industries
d) Providing employment
e) Attracting private sector investment
f) Increasing government revenue
g) Utilizing nation resources
