If we assume the private companies are those businesses that are owned by private groups of individuals and public companies are those listed in the stock exchange and whose sole purpose is to enhance (enhance the value of share holders) there is only really one difference between those companies which makes their direction completely different.
- Public companies have the responsibility to make next quarters, next years half and next years end results better than the previous year. Its main function is to maximise profits and to grow.
The difference between the public and the private company is that the private company doesn’t have to do that. The private company has the opportunity to look 5 or 10 or even 15 years forwards to plant the tree, to train the team and to invest in the facilities.
Not because it will bring gains at the end of the next quarter but because it is the right thing to do, to build something good with longevity in the long term.
You can choose who you work for you know? But it is important to have the facts about who you work for before you choose.
Blog post number: 1398
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