Saturday, 12 May 2018

Features of Private Sector Organizations

Following are features of Private Sector Organisations-

1. No Government Participation - Neither Central nor State Governments participate in private sector organisation

2. Control/Management - Management/Control of the private organization is entirely in hands of private businessmen

3. Decision Making - Decisions of private sector organizations are faster as the control is entirely in the hands of private entrepreneurs. There is also a lot of flexibility in decision making

4. Government Interference - There is hardly any interference of the government in such organizations.

5. Profit Objective - The main objective of private sector enterprises is to make profits.

6. Ownership - The ownership is in the hands of private entrepreneurs.

7. Capital Investment - The capital invested is entirely that of private individuals and hence entire profit belongs to them

8. Risk Bearing - The entire business risk is borne by the owners who have invested capital in the business.

9. Contribution to the economy - Private Sector Organizations contribute to the economic development by generating employment opportunities and producing good quality goods and services.