1. Improvement in efficiency: -The motive of private enterprises is to maximise profits. Therefore, they have to improve efficiency and performance without the competitive forces.
2. Raising Funds: -By selling government equity to private sector it is possible to raise funds for public investment.
3. No political influence: - Once a public sector is privatised it becomes free from political, ministerial and government intervention.
4. Quick Decisions: - In private sector organisation quick decisions can be taken to respond to changing circumstances.
5. Better Service to the customers: -The survival and growth of private sector enterprises depends on consumer satisfaction. Therefore they try to provide better quality goods and services to their customers.
6. Quick remedial measures: -In private sector enterprises quick remedial measures must be taken to avoid wastages, losses and to secure benefits from business opportunities. There is no scope for red tapism.
7. Easy to fix responsibility: -In private sector organisation authorities, responsibilities and accountability are generally fixed by the Board of Directors and corporate laws. Therefore, it is easy to fix the responsibility in the case of failure in performance by any employee