The role of private companies is very important in economic growth because the existence of private companies can reduce unemployment in a country and increase state income from taxes. Moreover, if the private company is large, the contribution in taxes will also be large, which can later be used by the state to improve the economic welfare of its people.
The public and private sectors each serve distinct functions and collaborate with one another. And, to some extent, the private sector has played a significant role in the country's economic development; they have not done everything, but they have contributed. And, while the housing sector has made significant efforts to assist individuals in obtaining homes, the majority of houses are now out of reach for regular people due to their high cost. Aside the reduction in unemployment their are other sectors they have also contributed even in health. Most of the companies have offered free check ups for people. The economy benefited, as did the people. The company's tax rate will vary depending on its size.
The government genuinely benefits from the private sector. Just that the government's policy is not always friendly to these companies, so some of them may want to leave that country due to taxes, so they will want to try other countries with cheaper labor and a fair tax. The tax is supposed to be used for the improvement of the country but who knows what they do with the money they collect.
We can't deny the fact that the private sector is also vital in the economic progress of any government. As they have their own mission to accomplish in the business, they make sure they have all the resources to achieve such mission. And along with such accomplishments are also people in these companies that are also earning, and so they are the ones comprising the community. With good income, comes with good economy.