- Covers a broad spectrum – entry to the business to the final result of business
- The reservation of industries to small scale, public and cooperative sectors.
- Licensing system
- Regulation of entry
- Regulation of product mix, promotional activities etc.
- Regulate relationship between organizations.
- Building infrastructure – power, transport etc.
- Financial support
- Institutions for training and other promotional activities.
- Provisions of monetary, fiscal and other incentives.
- Development of priority sectors and activities.
- Establishing and operating business enterprises and bearing risk.
- Factors such as socio-political ideologies, dearth of private entrepreneurship, absence of adequate competition in certain sectors etc contributed for growth of state owned enterprises.