State-owned enterprise

A state-owned enterprise (SOE) is a business entity which is established or owned by a national or sub-national government, by an executive order or an act of legislation, in order to earn profit for the government, control monopoly of the private sector over means of production, provide commodities to citizens at a lower price, implement government policies or to deliver products and services to remote locations that otherwise have trouble attracting private vendors. The government will hold either all or majority equity over the assets of these enterprises, and often has direct jurisdiction over their operations.[1] Defining characteristics of SOEs are their distinct legal form and possession of financial goals and developmental objectives (e.g., a state railway company may aim to make transportation more accessible and earn profit for the government), and they can be considered government entities established to pursue financial objectives from the commercial market and achieve state capitalist goals.[2]

  1. ^ "State-Owned Enterprises Catalysts for public value creation?" (PDF). PwC. Retrieved 16 January 2018.
  2. ^ Profiles of Existing Government Corporations, pp. 1–16