3 Reasons Why Government Shouldn’t Be Run Like a Business

Source: onlinemba.com

Created by OnlineMBA.com

The difference between running a business and running a city boils down to this: Try closing a local, little used fire station to save a few bucks. Outraged neighbors of all political stripes would storm the city council in protest.

Now compare that to the silence that typically follows a corporate decision to close an underperforming branch bank or a surplus warehouse.

The reactions are different and for good reason. Although corporations and governments are organizations, that may be one of the few traits they have in common. The role of a business, any business, is to make money.

Successful companies typically accomplish that by producing products that consumers want. In addition, they must continuously find ways to reduce costs to better meet the bottom line.

Although governments must respond to the desires of their constituents (consumers) by providing necessary services (products), here the path diverges because public officials, unlike those in the private sector, must balance meeting the bottom line with the expectation that they will also provide for the common good, however that’s defined. Check out the video and learn about the three major differences that separate governments from businesses.
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