How to identify a Private and Public Enterprises

  1. In Private Enterprises, Shareholders or Individuals e.g. Sole Proprietorship, partnership, cooperatives, companies while public own it the Government or its agencies own enterprises.
  2. In Private Enterprises, its main aims and objectives is to maximize profit except for the cooperatives, which are not after profits while on the other hand, the main aim and objectives in public enterprises is the provision of essential services, guarantying national securities, provision of employment opportunities and many more not mentioned. Profit making is just a matter of secondary consideration
  3. The formation of private enterprises is effected by Incorporation while the formation of public enterprises is established through an Act of Parliament.
  4. In a private enterprise, the shareholders elect the members of the board of directors that will control and head the organization while in a public enterprise; the government ministry in charge appoints the members of the board of directors that will control the organization.


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