- Government interference :In the matters related to some important decisions or involving huge investment, there is always government and political interference.
2.Corruption : Where it involves dealing with the public, corruption is inevitable. This corruption destructs the whole purpose of creating such enterprises.
3.Flexibility on papers only : All decisions of such enterprises are subjected to many rules and regulations of the government. Therefore, the operational flexibility is available on papers only.
4.Delays in action: An advisor from the government side is appointed in these enterprises. His presence reduces the freedom of the enterprise to enter into contracts or to take independent decisions. Sometimes, some issues are referred to the government for further clarifications or opinion. All these channels further lead to delays in action.