The role of private companies in an economy
Good day buddies, hope we all are doing fine? Is another brand new day and I am here to share some knowledge with you guys. When it comes to an economy, what makes it strong doesn't lie in the hand of the government alone. Especially in my country, I have seen people who complained that the government should be ready to take care of waste. To some point, I agree to this, while to some other point, I disagree.
We should remove the mentality that it is the duty of the government to take care of that. We should see it as our individual responsibility and it lies in our hands to get it achieved. I have seen government provide waste bin and what the citizen does is messed it up. They will just drop the dirty any how they sees it and such people lament at the end that government is too dirty. Now, take for instance, you see that the first waste bin is full, what is stopping you from using the other available waste. Because you are lady, you decided to still use the first one and the whole place looks messed up. After this bad act, you then went up to put the blame on the government.
I have also seen some person who leave the duty of maintaining the dirty roads at their front and also their dirty gutters for government to always take care of. I remember a popular saying which my father always says. He said that it is hand that washes hand. Now if the government are not gearing up to get roads and gutters maintained, individuals can do it and at the end make their locality beautiful. The government if they look at this, they will want to put in their own support. I have seen a man and his family got employed on such merit by his government for always keeping his locality beautiful. We should learn to emulate good thing.
Returning back to the topic of discussion today, let us talk about private companies.
What is a private company
A privately company or close corporation is a business that is not owned by the government, non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately or over-the-counter. More ambiguous terms for a privately held company are closely held corporation, unquoted company, and unlisted company.
From the above, we can clearly state that private company are company that are owned and manage by private individuals. These companies risk and profit is also controlled by the person incharge of the business. The bottom line is that business is not owned by the government.
Now because they are not owned by the government doesn't mean they are not serving some purpose when it comes to the economy. Below are some of the ways the private companies help the government;
- They provide employment for citizens; When a company is being run, there is no way it won't employ one or two person, this in return will help to assist the nation in so many ways. When a country has a lot's of private investors, you will see that such nation will surely do exploit if they don't rely on the private companies alone. In such state, government should also give their own quarter of support and not relent on private companies alone.
ii. The private companies generate revenue for the nation; We know how tax is very important to the government. When we have many private owned companies in place, the responsibilities of tax will be taken care of.
iii. Private companies contribute to both infrastructure and social services; When it comes to private firm, it has to deal with infrastructures. As we have it, infrastructures has to do with waste management, maintaining of street, roads etc. They also helps to ensure that they deals on project that include supply of electricity and also deals on providing good water system to the nation. The light project they run to some communities help to see that the cummunities no longers suffers for electricity, this is indeed something massive for every under developing nation.
I hope you enjoy this post and see that it is not just the duty of the government to provide all the jobs, infrastructure and every other things we need. Just like replaying our mind to that popular sayings, it is hand that washes hand.
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