Importance of public enterprises

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.