PUBLIC ENTERPRISES or corporations are statutory bodies established by law arid controlled by the state for the operation of basic public services, They are established to run the services, which private investors cannot afford to embark on due to the ugh t:apitril requirement as well as low profit prospects. Examples of public corporations are NITEL, NEPA, NIPOST, WATER BOARD etc.


  1. Provision of necessary social facilities like education and health care centres.
  2. Capable of expanding to any size.
  3. Large scale production is achieved.
  4. They enjoy monopolistic powers.
  5. Their operation is carried out without any competitor e.g. NEPA.
  6. Legal personality is ensured. It can sue and be sued.


  1. Serves as dumping ground for frustrated politicians with little or no business know-how.
  2. Exploitation of the consumers is at the esteem as a result of the monopolistic powers.
  3. Embezzlement and misappropriation of the public fund. 
  4. Inefficiency in production resulting to wastage are not discourage. Losses are borne by the tax/ rate prayers.
  5. Important decision and changes are delayed.
  6. There is an absolute lack of sense of responsibility i.e. poor attitude to work by the employees.


  1. Personal contributions or savings.
  2. Borrowing from individuals.
  3. Obtaining loans from financial institutions like banks.
  4. Issuance of shares and debentures.
  5. Credit purchases and 
  6. Plough back or re-investing profits.


  1. Location of business enterprise: this is a major problem that faces the businessmen. This is because the location of their business in strategic position goes a long way in affecting the profitability of the business.
  2. Another problem of the business enterprises is the availability of raw materials.
  3. Infrastructural problems such as inadequate supply of electricity also hamper the business enterprises.
  4. Lack of sufficient capital.
  5. Lack of sufficient indigenous manpower.
  6. Low demand for product and unhealthy competition.
  7. Problem of meeting trade union demand. 
  8. Government intervention 
  9. Political instability


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