Why are government run business inefficient?

Niyi Briggs · Jan 11, 2023

Most businesses owned and run by government does not always do well. Most timea, the government has to set up these businesses and sell it off to private individuals to be managed.

What is the factor that makes the running of government businesses inefficient?

Magnus2022 · Jan 11, 2023

Government enterprise run very well except in corrupt countries like Nigeria and other African countries. In European countries, government business are running with no hitches.

Knowledge Quest · Jan 11, 2023

Government run businesses can be inefficient due to a lack of competition, inadequate oversight, and limited resources. Without competition, there is less pressure to innovate or stay competitive, leading to stagnation and inefficiency. Additionally, government bureaucracies often lack the oversight necessary to ensure that their businesses are adequately run, leading to mismanagement and lack of accountability. Finally, government run businesses often lack the resources necessary to remain competitive, such as financial resources and cutting-edge technology, which can lead to further inefficiency.

flower · Feb 2, 2023

In my country, the government has never owned a business and it becomes successful because they are bad business managers.

Shavkat · Feb 11, 2023

Governance is the primary role of the government system. It is not for business per se. However, some countries' businesses are controlled by the government. I hope it is not going to lead to corrupting things up.

Reedex · Feb 11, 2023

The government companies or investment luck the monitoring and that is why many people that is found managing the business will do whatever he likes and he can even steal the company's fund.

flower · Feb 11, 2023

In some part of the world the government could manage business efficiently and it will make reasonable profit and it will be a good way for the government to earn more income.

Bisolami · Feb 12, 2023

Niyi Briggs said:
Most businesses owned and run by government does not always do well. Most timea, the government has to set up these businesses and sell it off to private individuals to be managed.

What is the factor that makes the running of government businesses inefficient?

The government is capable of running a business successfully but I think most of them do not always have the time for the business or invest enough time in it

eldavis · Feb 28, 2023

There are several factors though, but in most cases it is usually due to the high level of corruption going on. Does in authority simply give out positions to people they know rather than people that are qualified. Hence they misuse what they have.

Niyi Briggs · Feb 28, 2023

Now the government run businesses are managed by politicians or ally's of the present government. This would make the government to turn a blind eye on all the bad things they are doing that can run down the business.

Springtime · Mar 1, 2023

We do not have government run businesses here. There are government subsidized organizations. They are set up to promote the application of technology in private businesses. There are also government subsidized organization such as Hong Kong Trade Development Council to promote international trade. All these organizations are not run by government officials. They are run by professional managers.

Shavkat · Mar 1, 2023

flower said:
In some part of the world the government could manage business efficiently and it will make reasonable profit and it will be a good way for the government to earn more income.

I agree that some government in other countries can handle different businesses. For example, Chinese government tends to have the ruling of the businesses. Although some locals are whining about this. Because they were being controlled.

IB D · Mar 1, 2023

It is because of the widespread corruption in the government sector. If most governments can be like the Chinese government, then it would be easy to make these public corporations efficient.

Why are government run business inefficient?

Niyi Briggs

Well Known

Magnus2022

Notable

Knowledge Quest

Notable

flower

Notable

Shavkat

Very Familiar

Reedex

Well Known

flower

Notable

Bisolami

Very Familiar

eldavis

Very Familiar

Niyi Briggs

Well Known

Springtime

Well Known

Shavkat

Very Familiar

IB D

Well Known

Connect With Us