Question

State arguments against public enterprises.

Answer 1

• Poor Project Planning: Many are set up hastily without proper research, leading to unclear objectives and poor results.
• Time and Cost Overruns: Delays raise costs and waste capital.
• Heavy Overhead Expenses: Excess spending on infrastructure ties up funds in unproductive assets.
• Inefficient Management: Bureaucratic control, frequent transfers, and lack of accountability reduce efficiency.
• Labour Trouble: Strikes and union issues disrupt work.
• Rigid Financial Control: Strict audits limit flexibility and innovation.
• Poor Returns: Many fail to earn profits, relying on government support.
• Political Interference: Political pressure delays decisions and hampers smooth functioning.