Importance of a state-owned company (SOC)
- Profits may be used to finance other state departments/reduce taxes.
- Generates income to finance social programmes.
- Jobs are created for all skills levels.
- Offer essential services which may not be offered by the private sector.
- Prices are kept reasonable/Create sound competition with the private sector to make services affordable to more citizens.
- Wasteful duplication of services is eliminated.
- Planning can be co-ordinated through central control.