Question

State any two drawbacks of state enterprises.

Answer 1

Two drawbacks of state enterprises are as follows:
i. Low efficiency: Public sector enterprises are dubbed as inefficient as compared to private enterprises. Many public sector undertakings are inefficiently managed by non-technical and inexperienced bureaucrats.
ii. Undue delay : Many a times, there has been uncalled delay in completing various projects. Many of the public sector projects took much longer time to complete than was initially estimated.