Meaning of Business Enterprise
Business Enterprise or a Business undertaking is an institutional arrangement to conduct one or other type of business activity.
According to Wheeler
Business undertaking is an enterprise which buys and sells and is owned by one or a group of persons and is managed under a specific set of operating policies. Business Enterprise is the outcome of the efforts of one or more entrepreneurs who pool together their resources and coordinate their activities to carry on business activity.
Types of Business Enterprises
On the basis of ownership business enterprises are classified as:
- Private sector enterprises,
- Public sector enterprises, and
- Joint sector enterprises.
What are Private Sector Enterprises?
Business enterprises owned by private individuals, singly or jointly, are known as private enterprises. There is no Government participation in the ownership of such enterprises. All non-incorporate enterprises are included in it.
Examples of Private Sector Enterprises
Sole trading concern, Joint Hindu Family business, Partnership, Joint Stock company, Cooperative societies, Multinational companies are the main examples of private enterprises.
What are Public Sector Enterprises?
Any enterprise which is established, managed and controlled by government is known as public enterprise. There are three types of public enterprises. These are
- Departmental undertaking,
- Public corporations, and
- Government companies.
What are Joint Sector Enterprises?
Joint sector enterprises consist of those undertakings wherein the Government, Private entrepreneurs and Public share the management, ownership, and powers of the enterprise, jointly.
Example of Joint Sector Enterprises
Maruti Udyog Ltd Cochin Refineries and Gujarat Fertilizers are few examples of joint sector enterprises in India. Cooperative form of enterprises also come under this sector.