State owned enterprises (SOE), commonly known as ‘Public Enterprises’ which exist to serve the people with goods and services in order to create a balance between the public and private sectors’ role in maintaining rule of law and avoiding social chaos, though, on business principles; return on investment and return on equity. In other words; SOE is state intervention in the economic activities with the responsibility of fulfilling chosen social goals, including regional and economic balancing, providing employment to its citizens and reducing the monopoly power of corporate in the economy. Despite, such enterprises have the state’s patronage, face governance and management issues. The core reasons behind this issue is the people who have been charged with the responsibilities to run the affairs of SOEs have little exposures of real business world and possess insufficient business acumen with a few exceptions.
It is an undeniable fact that business thrives on the philosophy of efficiency and effectiveness, therefore irrespective of the organization’s purpose – be SOE or a Corporate – successes of such entities is strongly linked with the entrepreneurial principles, such as; identification of right business opportunity or creation of need and ready to take risk arising out of such activities.
This 20 minutes talk will explore the reasons of rise and fall of SOEs in Pakistan in last 50 years. For the purpose, 25 Pakistani SOEs have been explored and concluded the five critical references of their success and failures in the country. Result of this study is eye opening as most of the reasons are repeatedly highlighted at different forum but generally ignored by the people who are responsible for governing and managing the affairs of SOEs.
Result of this study throw lights on the shortcomings of the SOE governors and Managers at the same time recommends tools and techniques of the good governance and management of public enterprises.
Keywords: Public Enterprises, State Owned Enterprises, Entrepreneurship, Business Management, Governance.