Republic of the Philippines
Tarlac State University
COLLEGE OF PUBLIC ADMINISTRATION AND
GOVERNANCE
Romulo Blvd., San Vicente, Tarlac City
TYPES OF PUBLIC ENTERPRISE OPERATED BY LOCAL
GOVERNMENT UNITS
________________
A Written Report
Presented to
DR. ROSWALD G. FERMIN
(Instructor in PA 13)
In Fulfillment
of the Requirements for the Degree
Bachelor of Public Administration
__________________
CHARIE VEL A. ESPIRITU
Presenter No. 21
November 2023
I. Summary of the Topic
This paper enumerates the types of public enterprises operated by LGUs which were
based on: 1) Expressly authorized by the Local Government Code of 1991, 2) According to the
DOF and the NTRC listing in a study prepared for the Philippine Institute for Development
Studies and NEDA ( DOF-NTRC, 1982), and 3) A primer on the Local Tax Code, P.D. 231,
prepared by the Department of Finance. This topic will also reiterate the role of public enterprise
in the socio-economic development of the country. By employing their corporate power, LGUs
are continuously looking for additional sources of income and ways to additional resources in
order to enhance their operations and meet the constituents' increasing demand for more and
better services.
II. Discussion
Public enterprise can be found in almost every sphere of economic activity. To put it
succinctly, the term "public enterprise" describes an organization that embodies both
"enterprise" and "publicness" (Ramanadham, 2019). Additionally, Basu (2005) defined public
enterprise as any business that is involved in the sale of goods and services and is owned by the
government, whether entirely or through a majority of its shares (Brittanica, 2023b), whether it
be financial, industrial, commercial, agricultural, or promotional. For Ogbe (2016), PE’s main
goal is to promote and expedite the growth of the country's economy in the face of structural
flaws in the structure of private enterprise organizations and a lack of capital.
In the Philippines, public enterprises are founded for a variety of reasons, such as
nationalism, development requirements, economic viability, taking advantage of opportunities
presented by obstacles, cultivating public interest and trust, supporting financially distressed
businesses, and exhibiting both economic viability and public trust (Baustista, 2007).
Public enterprises play a crucial role in developing nations' economic growth by
implementing public sector programs and ensuring the provision of essential services like water,
electricity, gas, and telecommunications at fair rates. Public Enterprises contribute to job
creation, and economic growth through advancements in technology and infrastructure. Public
enterprises also support social welfare by offering necessities like food grains and fertilizer at
fair prices and maintaining a steady supply to prevent price increases. Additionally, public
enterprises can be used to promote social and economic objectives, such as reducing poverty or
promoting social welfare.
While some public enterprises in certain countries are handled well and offer
development-related services, far too many of them have simply devolved into another
bureaucracy beset by corruption, incompetence, inefficiency, and ineffectiveness, squandering
funds from the public finances.
In the Philippines, public enterprise concerns can have a big impact on social welfare
results as well as economic growth. Problems like corruption in these organizations can cause
resources to be misallocated, which can lead to the inefficient use of money that could be used
for more worthwhile endeavors that would benefit society as a whole. also often acquire bad
habits: burdensome bureaucracy; confused objectives; directors owing responsibility not to the
public but to the state or ministry or even to individuals within government or a political party
(Bati, 2005). Furthermore, when these organizations are not transparent, it can create an
environment in which it is hard or impossible to hold them accountable, which makes it even
harder for them to carry out their intended functions.
III. Conclusion
It follows that the role of public enterprise in the political and economic system cannot
be overstated. However, acknowledging its significance is insufficient. Despite popular
opposition to government business, the public needs to understand why these public enterprises
have proven capable of not only surviving but also growing. People also need to take into
account the supposed corruption, incompetence, and apathy in the management of these public
enterprises. Above all, knowledge of their nature and purpose is essential for citizens to assess
the degree to which they have met their objectives and suggest their proper place for
national development.
Sustaining development requires the public enterprise sector to perform better. In order
to facilitate and expedite the processes of export promotion, import substitution, technological
self-reliance, and the creation of investible surpluses, the public enterprise system must be
sharpened. In order to improve the performance of public enterprises it must be contingent upon
several factors, including political stability, the state's dedication to socio-economic
development, the advancement of instructional mechanisms, and an ideology that fosters
teamwork and learning by aligning expectations and goals, as well as the ability to creatively
adapt decision structures.
IV. Implications to the topic in the subject
Public enterprises are organizational tools for implementing strategic choices and
policies. The goal of all public sector authorities is to maximize the incomes and general well-
being of their citizens, and public enterprises are seen as an important policy instrument for
achieving that goal.
References
Ramanadham, V. V. (2019). The concept and rationale of public enterprise. In Routledge
eBooks. https://doi.org/10.4324/9780429200083-1
Basu Pralhad, K. (2005). Reinventing Public Enterprises and its Management as the Engine of
Development and Growth. In Expert Group Meeting on Reinventing Public Enterprise and their
Management, Public Enterprises: Unresolved Challenges and New Opportunities, New York,
Nations unies.
The Editors of Encyclopaedia Britannica. (2023b, October 6). Public enterprise | Definition,
Benefits & Examples. Encyclopedia Britannica.
https://www.britannica.com/money/topic/public-enterprise
GBE, O. A. A. (2016). ). Public Enterprises as Catalyst for Economic Growth and Development
in Kampala - Uganda. Methuselah International Journal of Arts and Religion Since Time
Immemorial, Volume 1(No. 1).
https://www.researchgate.net/publication/318781828_PUBLIC_ENTERPRISES_AS_CATALYST
_FOR_ECONOMIC_GROWTH_AND_DEVELOPMENT_IN_KAMPALA-UGANDA
A critical look into the role of public enterprises | Kasarinlan: Philippine Journal of Third World
Studies. (n.d.-b). https://www.journals.upd.edu.ph/index.php/kasarinlan/article/view/
515#:~:text=There%20are%20several%20reasons%20for,corporations%20to
%20demonstrate%20economic%20viability.
