Day 19: Business Studies - Public, Private, and Global Enterprises

Introduction

• This session is part of the 100 days commerce pro series
• Focus on completing syllabus in accounts, business studies, and economics
• Chapter 3 in business studies: Public, Private, and Global Enterprises

Recap of Previous Chapters

• Chapter 1: Basics of business, types of businesses, business profession employment, and business risks
• Chapter 2: Types of business entities: individual business, sole proprietorship, partnerships, HUF, Cooperative Society, private and public companies

Chapter 3: Public, Private, and Global Enterprises

• Focus: Sectors in the economy
• Mixed economic system in India (Social welfare vs. profit-making motives)
• Three main sectors: Public, Private, and Multinational Enterprises

Mixed Economy System

• Combination of Socialist and Capitalist economies
• Government-led organizations for social welfare
• Private entrepreneurs for profit-making
• Co-existence of public and private enterprises (e.g., govt. schools and private schools, govt. colleges and private colleges)

Types of Enterprises in Mixed Economy

1. Public Sector Enterprises (PSEs) / सरकारी संगठन

   • Operated by government (central or state)
   • Aim: Economic development, not profit-making
   • Accountability to the public through parliament
   • Types: Departmental Undertakings, Statutory Corporations, Government Companies

2. Private Sector Enterprises

   • Operated by individuals or groups (e.g., sole proprietorship, partnerships, cooperative societies, private companies)
   • Aim: Profit-making

3. Multinational Companies (MNCs)

   • Operate in multiple nations

Features of Public Sector Enterprises

• Ownership and Management: Owned and managed by government
• Objectives: Economic development and social welfare
• Accountability: Transparent and accountable to public and parliament
• Funding: Public funds (government treasury)
• Operation: Managed through government offices and employees

Forms of Public Enterprises

1. Departmental Undertakings
   • Oldest and traditional form
   • Managed by ministries (e.g., Indian Railways by Ministry of Railways)
   • No separate legal entity from the government
   • Examples: Indian Railways, Post and Telegraph, Doordarshan
   • Funding: From government treasury and revenue goes back to it
   • Employees: Government employees

Merits of Departmental Undertakings

• Public accountability and transparency
• Parliament oversight
• Revenue supports government activities
• Preference in national security

Demerits of Departmental Undertakings

• Lack of flexibility
• Conservative and cautious bureaucratic approach
• Red-tapism (delays in decision making)
• Political interference and corruption

Conclusion

• Understand the basic structures and roles within mixed economy sectors
• Focus on public sector enterprises today, particularly departmental undertakings
• Next sessions will cover more forms and details

Thank you for joining, keep studying, and growing!