Demerit of business organisations owned by government.

[TOZZIBLINKZ]

In one of my previous trade I talked about the advantages or demerits of government only business organisations and Enterprise and some of these areas include provision of essential services , prevention of exploitation and discrimination , creation of more employment opportunities , economic development , high standard of living for the people , conferation of Monopoly , generation of revenue , and evenly distribution of goods and services . Furthermore , it will be unwise if we only talk about the advantages or merit and neglecting the demerits or disadvantages of government owning business organisations and Enterprises . below are the main disadvantages caused by government owning public corporations :

HIGH LEVEL OF CORRUPTION : the corruption level of a particular country tend to be in a high rate as a result of government owning public organisations this is due to the fact that workers and officials believe that government properties and nobody's properties . And so they feel enticed to deceitfully mismanage government owned enterprises .

CONSUMER CHOICE IS NOT GUARANTEED : as a result of ownership of business organisation and Enterprise by the government , the practice of Monopoly tends to occur where consumers are denied their right to choose between alternatives . And so they are faced with a situation where they have no choice but to accept what the government has in order for them .

 

[Kingsley]

Naturally one would expect that corporate organizations been run by the government of a country like mine would be to render essential services and provide the basic needs of the people since the organization is been funded by tax payers money and the people should always be the primary focus of the government. In fact we keep saying public corporations are set up primary to render essential services and not for profit making purposes. But unfortunately this not always the case. As what we see in my country is the direct opposite. The government spends more on themselves to better the lot of themselves and their family, all they do is for their selfish reasons. And greed always be clouds their judgment and actions. And what we see even in this public corporations are nothing but corruption at its peak you will have to bribe your way to get what should have been given to you duly, they will make you pay then and give them tip off before they can attend to your request. And this things plays out in all the governmental parastatals that we have in my country there is hardly anywhere you go thay you will not experience this things.

 

[Hagson1]

For business to be more advantageous it's required a lot of resources. Business own by private individuals are of limited opportunity than that own by the government. Business own that private individuals, all the resources needed in other to make the business stable is required by that single individual but that of the government is not like that.
Some of the merits of government own business is that, in terms of capital a lots of money is been invested as the capital this is because money is not the problem. Another merits of government own business is that the risk is directly to the government. No any individual working in that organization will pay for the lost of the business. The risk bearing is directly to the government. In addition to that government own business provide job opportunity to many people. It's reduce the rate of unemployment in the community, as this is the major thing affecting the youth of African countries especially Nigeria. It also provide people with Goods and services at lower price. Because it is own by the government the price of goods and services are not the same with that of the private individuals as their is a lot of discount.

 

[Augusta]

I have come to realise that business organisations or Enterprises owned by the government hardly do well. it is always characterised by a lot of damaging issues than the private businesses and this is the reason it is always crashing within a short period of time. With government business there is always high level of corruption.

Those in charge are always very corrupt they want to steal the place blind . The corruption level is always is always very high . As you rightly stated they rate believe that government properties are nobody's properties hence they can just steal them. . There's also the practice of Monopoly