QS Study

Suitable Fields for State Enterprises

If the state gets the ownership on continual at any business directly or indirectly incest it that business is called as the state enterprise. The business controlled or operated by the government is known as a state enterprise. Now-a-day we can see the existing state enterprise in every country. State enterprises are not suitable in all fields. There are some special fields where establishing and operating state enterprise is suitable. Suitable fields for state enterprises are stated below:

Establishing heavy and basic industries: It becomes difficult for the private industries to invest such huge amount in the heavy and basic industry. But these industries are very much needed for economic development. State enterprise plays a big role in establishing steel industry, the industry of mechanical instrument, Airplane, Oil Refining etc.

Establishing public welfare industries: The major field of state enterprise is to establish public welfare industries in a country. The industries which are ensuring water and electricity supply, developing telecommunication systems, ensuring sewerage systems, supplying gas etc. needed government support to establish and conduct activities.

Establishing defense industry: In modem world defense equipment as arms bombs, fighter, tanker, cannon etc are always under the control of the government.

Industry for confidential work: Government initiative is necessary in case of industry where house, money, important government papers, or even maps will be published.

Currency control and banking systems: The prime of the government is to regulate the money and the capital market central bank does many things like controlling the standard of money value reducing inflation and overall controls of loans and others financial activities.

Control of harmful products: Products like alcohol, acid, and others chemical products which are harmful to society and human life need to keep under the supervision of the government.

Natural resources-based industries: The responsibility of using natural resources properly and taking care of them is lying on government hand. So the organizations based on natural resources should be established under government supervision.

At last, we can say that state enterprises are established in above fields, it will provide more facilities to the state and general public. But the government has to aware of operating and controlling these enterprises or else the result will not be good for human being. Side by side government should come forward inspire and control of private sector for establishing essential drug industries with the view to provide service to the general people.