Private, Public, and Global Enterprises Explained

With the upscale of the economy all over the world, the sphere of business and trade have changed in a vast manner. In today’s time there are enterprises who run the economy of any nation. 

These enterprises are then subdivided into other names as well. The basic fundamental is that the realm of modernization has also captivated these enterprises with every passing year – the modernization gave rise to competition and change. This has mostly affected the types of enterprises working here. With this interface we will know about the enterprises in our preceding section.

 Private, Public and Global Enterprises

The enterprises here are divided into three basic groups – Private, Public, Global. With the advent of modification in these enterprises their definition and scope has also expanded. 

Private Enterprises

A Private Enterprise is an entity which operates under the ownership and management of individuals who are free to decide and to develop a given business idea. They are beyond the captivity of government intervention, and this makes it different from a governmental institution.

Among other entities in a free market, private enterprises are the keystone, since they allow individuals working here to possess ideas, concepts and assets that work together to produce the final results which are both positive and initiates wealth creation. 

• Under a market economy, of a nation, private enterprise should be enforced to promote the nation’s development and growth. 

• The individuals are empowered here and are motivated to pursue their self-interest through creating business enterprises in this hemisphere. 

• With the approach of wealth creation this further gives them the power to have full ownership. 

• They are entirely managed by the private individuals, and thus exclude governments from having a vote in their company’s decisions and managing the courses of action.

• The enterprises that are owned by one or more individuals by sharing the stake of ownership in the company. 

• The private enterprises are free to pursue any legally permitted business activity and to develop any projects which will help them to achieve the enterprise’s goals.

Public Enterprises

Public enterprises are those business organizations which are wholly or partially owned by the state and are controlled through a public authority. These public enterprises are placed under the public ownership, for social reasons, the product provided in this market is by a state monopoly. Gas, electricity, broadcasting, telecommunications, and other forms of transport are examples of this kind of public enterprises.

• Public enterprises are normally intended to be operated in the public interest. Also, this gives rise to a number of organizational and commercial issues. 

• The public corporation form, is used extensively in Great Britain and other parts of the world, the organization is created by a special act of Parliament which defines its powers, management structure, and relationship with government bodies. 

• The corporation has a legal entity, and its capital requirements are funded from the state treasury. 

• Its employees are not civil servants, and the top management of the enterprise is often appointed by the ministry in charge. 

Global Enterprises

Global enterprises are those business structures which have its functions conducted and coordinated between two or more countries. Their industrial and marketing operations network is extended in several other countries. These enterprises have a bigger vision than other enterprises and they capture all the market of the host country forming monopoly power.

• Global enterprises are those companies that operate around the globe. 

• They are categories which are based on their huge size, a large number of products, advancements in technology, they strategize, markets, and networks operations all over the world. 

• With the network of branches in several countries, the global enterprises expand their industrial and marketing operations over all.  

• Their vision to work across many global frontiers is to earn in international currencies from many countries. 

• These organizations have books of accounts for various countries, which at the end of financial year of respective countries are consolidated together, according to its requirement.