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Figure 3: the Most Common Local Public Enterprises Operated by Local Governments

Unit: % (Amount)

Source: Researcher

= Lack of Budgetary and Fiscal Potential

The Local Public Enterprises and Social Enterprise by local governments should
be implemented when local governments are equipped with financial skills and
budget potential. Many local governments especially small local governments

lack the ability to maintain even the normal financial operation and need
technical assistance in the areas of finance and budget. As the result, it is
impossible for local governments to conduct Local Public Enterprises with the

limited skills and expertise of Finance and Budget.

= Lack of Business Management Skills and Technical Expertise of Public
Services

Local Public Enterprises and Social Enterprise require knowledge and
techniques of business operations to run the operations smoothly such as

Finance and Accounting, Human Resources and Labor Relations, Strategic
Management, Risk Management, Organization Management, Information
Technology Management, and other relevant technical and specialized skills.
However, knowledge of business management system is not common among