There are many differences between a private enterprise and * state enterprise. The main differences are:
| Private Enterprises | State Enterprises or Public Enterprises |
| 1. A private enterprise enjoys more flexibility of operations. | 1. A state enterprise does not enjoy flexibility of operations |
| 2, A private enterprise is considered to be more efficient. | 2. A state enterprise is not as efficient as a private enterprise in not as efficient as a private enterprise. |
| 3. A private enterprise is free from political interference. | 3. A state enterprise may not be completely free from political interference. |
| 4. Private enterprises often result in exploitation of laborers. | 4. State enterprises give a fair deal to laborers. |
| 5. A private enterprise is owned and managed by private individual or individuals. | 5. A state enterprise is owned and managed by the Government. |
| 6. A private enterprise is organized for the benefit of a few private individuals. | 6. A state enterprise is organized for the benefit or the public at large. |
| 7. A private enterprise may be small or large in size. | 7. A state enterprise is usually large in size. |
| 8. Profit is the main motto of a private enterprise. | 8. Service is the main motto of a state enterprise. |
| 9. A private enterprise may not come forward to undertake risky ventures. | 9. A state enterprise often undertakes risky ventures avoided by the private enterprises. |
| 10. Private enterprises lead to concentration of wealth and income in the hands of a few individuals. | 10. State enterprises lead to distribution of wealth and income among the entire public. |
