A Private Enterprise is an entity that operates under the ownership and management of individuals that freely decided to develop a given business idea. Its freedom from government intervention is what makes it different from a government institution.
These entities are the corner stone of free markets, since they allow individuals to possess ideas, concepts and assets that work together to produce positive financial results through wealth creation. Under a market economy, private enterprise should be enforced to promote the system’s development and growth. Individuals are empowered and motivated to pursue their self-interest through business enterprises, with the incentive of wealth creation that can be amassed to themselves through full ownership. They are also entirely managed by private individuals, therefore excluding governments from having a vote in the company’s decisions and courses of action.
These enterprises can be owned by one or more individuals through shared ownership. In most countries, these entities are subject to federal taxes to help maintain the nation’s proper functioning and they are also subject to external regulative bodies that enforce things like labor laws and ethical business practices. They are free to pursue any legally permitted business activity and to develop any projects they consider fit to achieve the enterprise’s goals.
