The Public Private Partnership is where a government organization gets together with private partnerships.
The private partnerships can be stoke exchange, or joint ventures, venture capitals, organizational Partnership and any other private source of funds.
This partnerships are creates a strengths and weaknesses.
Advantages or Strengths
Advantages or Strengths for Government entity to jounce hand with Private Partnership
- Funding options
This private partnership will be a source funding to government origination.
- High technology involvements
This leads to introduce new technology to be economic and efficient
- Cooperate knowledge
The private partnerships may come with the excess of cooperate knowledge, which will success their operations.
- Improvement of the service quality of staffs
The private partnerships will expect to improve the staff’s efficiency, and reduce the operating cost.
Advantages or Strengths for Private Partnership to jounce hand with Government entity
- Easy to enter the market
The government support will help to enter the market in the country or specific business industry.
- Special tax exemptions
For the government partnership some governments are allows the tax exempted for certain time period.
- May support to bank loans at special rates
If the government jounce hand private partnership for knowledge, than government provides special bank loans with lesser interest rates.
- Brand name
Depend on the brand name ownership this partnership will help to develop their product or service widely.
Disadvantages or Weaknesses
Disadvantages or Weaknesses for Government entity to jounce hand with Private Partnership
- Lost the purpose of public entity,
With the private partnership the public sector will lost their main objective of serving to the general public.
- Misuse of the government supports
The partnership company can be misuse the government support for some of their other businesses.
- The influence of private partnership of setting the prices,
Disadvantages or Weaknesses for Private Partnership to jounce hand with Government entity
- Too much of political involvement
The too much of political involvement will lead to unsuccessful of the business entity.
- Government policy changes and the regulations
After sometimes it’s difficult to be operate with new policies and the regulations passed by government
- Government stability
The operations should have a proper mission and vision to be continuing. It should not effect if the government changes.
- Rules and regulations for taken back their investment or their profits.
The rules and regulations should be understandable to how to exit from the partnership or how to take their income to their country.
- May lose of brand name, if the process is fail.
If the project is fail, the private company may have chances to lose their brand name in their home market.