Public Enterprise, 2022, Issue 26., Vol.1, Article 2

Profitability prediction in Public Enterprise contracts

Naresh C Saxena
Independent Researcher, Canada

https://doi.org/10.21571/pehyj.2022.2601.02

Abstract
Across the world, the governments are seeking to enhance the performance their public
enterprises This process involves changing the mindset of public enterprise executives
from that of a government bureaucrat to that of a business leader. This includes running
public sector enterprises profitably. As agriculture transforms itself from a subsistence
activity to agribusiness across the world, the importance of agribusiness construction is
increasing. Commercial managers employed by public sector enterprises are asked to
estimate the expected profit on a prospective contract to either decide whether to proceed
with the project or to aid in financial forecasting for the company. The estimation of a
prospective contract’s profitability is generally done by intuition. A mathematical model
to aid in predicting the profitability of a prospective contract would be of immense use to
public sector enterprises and can be used as a tool to ward off political interference.
Furthermore, it would of considerable interest to commercial managers to know the effect
on predicted profitability of a contract should they change the value of an attribute of a
prospective contract. The application will, however, require close interaction between IT
professionals and public enterprise executives.

KEYWORDS: Construction, Agribusiness, Profitability, Machine Learning

Reference to this paper should be made as follows: Saxena, N.C. (2022). Profitability prediction in Public Enterprise contracts. Public Enterprise, 26(1), 25-42. https://doi.org/10.21571/pehyj.2022.2601.02

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