The essential difference between state-owned enterprises and private enterprises lies in who owns assets;
1, state-owned enterprises, in international practice, only refer to enterprises invested or controlled by the central government or the federal government of a country. In China, state-owned enterprises also include enterprises invested and controlled by local governments. It is an enterprise controlled by state-owned capital.
State-owned enterprises are often named after place names. For example, Shandong Electric Power Company must be a state-owned enterprise from one place. The enterprise property of state-owned enterprises belongs to the whole people, and the distribution of property and the payment of wages should be decided by the whole people.
2. Private enterprises refer to profit-making economic organizations established or controlled by natural persons and based on wage labor. It is an enterprise in which investors assume unlimited liability for corporate debts. It is an enterprise controlled by private capital.
The assets of private enterprises belong to individuals and shareholders, and the internal senior management is responsible for how to distribute the means of production and how to pay employees. As long as it does not violate the provisions of the labor law, it is decided by shareholders and senior executives.
Extended data
The present situation of state-owned enterprises
State-owned enterprises have a certain administrative nature. Due to historical reasons, the classification of state-owned enterprises is quite complicated. For the state-owned enterprises in China, those who invest or hold more than 50% of the state-owned assets are state-owned enterprises.