Dissimilarity between private and public sector venture
A private sector enterprise is managed by its owners or their elected representatives. The management has to abide by the guidelines laid down by the owners.
However, there is enough scope for initiative and dynamism because policies can be modified or even discussed according to the requirements of the particular situation.
In case of public sector enterprises, there is little scope for initiative and dynamism because managers of such enterprises are required to operate with in the rigid policy framework and rules framed by the government.
In a private enterprise, the owners are free to manage and control the affairs with little interference. But a state enterprise faces continuous interference from several agencies, e.g., ministries, politicians and bureaucrats.