Importance of Joint sector company

Joint sector enterprices represent an application of the concept of mixed economy at the micro level. Joint sector was conceived as a marraige between the managerial expertise of the private and financial resources and social orientation of the public sector, Following are the main importance of joint sector.

1. Curbing concentration of economic power: The Dutt. committee was of the view that the joint sector is an important means of curbing the incresing concentration of economic power. Joint sector can be expected to acquire an anti-monopoly role and control the expansion of the leading industrial houses. By establishing joint sector the monopoly business of leading industrial houses can be controlled. The concept of joint sector can encourage the large private sector to do the business jointly public or Government sector, which minimise their attitude of monopoly business.

2. Socio economic development: The existence of joint sector can develop the socio economic position of the country. Because under the system of joint sector, the government finance can be effectively used for the socio economic development through the effort of private sector. By the joint sector only both the government and private sector can jointly concentrate for the overall development of socio economic condition of a country.

3. Failure of private and public sector: Private sector is interested to increase the commercial profit. On the other hand, public sector is also suffer from many drawback, such as political affiliation, due to lack of efficient management etc. So the concept of joint sector can remove the drawback of both private and public sector and this sector can apply the positive aspect of both private and public sector. It is the only strong and positive aspect of joint sector.

4. Promotion of mixed economy: The concept of the joint sector has thus the potential, if properly used, to get the best advantages out of the mixed economy which has been accepted in our country as a matter of state policy. So, the joint sector can be expected as strong instrument to promote the mixed economy and to achieve development objectives. The basic justification of the idea of mixed economy is to harness all the productive forces of society, state as well as private, to the task of economic development with a view to accelerating the process. By allowing the private sector to play its role in day-to-day business activities the joint sector can create and develop entrepreneurship. Likewise the joint sector also reserve some right and power in the field of trade and commerce as a role to be played by the Government.

5. Coordinitation between two sector: The joint sector is an idea of maintaining coordination between private and public sector. Through joint sector the level of understanding between private sector and public sector can be increased. Combination of private and public sector through joint makes it possible to compromise many economic problems of a country and this sector can also provide valuable solution of both private and public sector enterprises. 

6. Mobilisation of financial resources: By the joint sector the financial resources of private sector can be mobilised to the hand of public for the greater interest of state's economy. In our country a huge amount of private resources can be properly joint used by joint sector.

7. Entrepreneurship development: The joint sector plays a vital role in the entrepreneurship development because, this sector encourages new and small entrepreneurs. The joint sector enables potentials entrepreneurs with small financial resources and less experience to participate in large enterprises as the public sector shares investment and the risk. Because of having government support many private sector may come forward and take advantage of joint sector opportunities. So, joint sector acts as a broadbasing of Entrepreneurship.

8. Mobilisation of techno managerial resources: Now-a-days the private sector has been gradually expanding their activities by increasing techno managerial resources from private to public sectorbecomes possible by joint sector.

9. Extension of public control: Joint sector also can be defined as a means of extension of public control over private sector business. The joint sector is via-media between private ownership and outright nationalisation. Only through joint sector, the Government can control the large private business houses. 

10. State-sponsored industrilisation: Joint sector can be used as a strategy of state sponsored Industrialisation. In case of joint sector, the Government can decide a project which are desirable from a social point of view and persuades private parties to join hands. As a result, it increases social orientation in the utilisation of private investable surpluses. it is so can be defined as positive method of bringing about a balanced pattern of investment as against the system of licensing which is a negative instrument. 


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