Public Sector Entrepreneurship and the Role of SOEs: Workforce Distribution, Economic Growth, and Innovation

Public sector entrepreneurship (PSE) has a significant impact on economic development, innovation and governance across different economies. Government are trying address the need for effective and equitable public delivery of services while maintaining industrial competitiveness and optimal use of taxpayer resources. The study builds on theoretical insights from public entrepreneurship literature, which emphasize the role of decentralized governance, innovation, and state-led industrial policies in shaping public sector entrepreneurial dynamics. Case-study approach is applied that integrates quantitative analysis of economic indicators with qualitative analysis of specific countries’ characteristics to assess the potential of public sector entrepreneurship (PSE) and state-owned enterprises (SOEs) in the examined countries. The findings reveal significant structural differences between state-led economies and market-driven economies, where SOEs play varying roles in shaping employment structures and innovation capacity. The paper contributes to public sector entrepreneurship studies by offering a comparative analysis of context-defining variables such as workforce composition and SOE impact on national economies, demonstrating how institutional frameworks and governance models influence economic resilience and innovation potential. These findings reinforce the case that SOEs are essential for stabilizing economies where private capital fails to promote sustained economic growth. Public sector entrepreneurship varies greatly depending on context, influenced by national governance models, economic policies, and workforce structures. PSE strategies have to be tailored to fit national economic structures and governance capabilities.