Abstract
The strengthening of democratic governance institutions is a key factor for any development
initiative. With these institutions in place, accountability becomes a yardstick to achieve greater
results. This article therefore set out to explore the impact that decentralisation has on Public
Enterprises. Decentralisation being an instrument of good governance, the article want to
investigate if it applicability on state own enterprises could stimulate economic development. A
policy of decentralisation could be considered as an important tool for economic development if
the process is adequately implemented. Public enterprises were put in place in many countries to
contribute to social development. However, past studies have shown that, public enterprises have
not performed well over the past fifty year or so. Many failed because of lack of transparency
and accountability. The central question around the thesis is why these public enterprises did not
achieve the required results for which they were created and what is needed for corrective
actions. The article concludes by proposing that, In order to ensure sustainability and economic
expediency, it is important to consider decentralisation as a condition for public enterprises to
achieve developmental results. The paper is divided into five major parts: The first part
introduces the topic; the second provides definitions of key concepts while the third part gives a
justification of decentralisation, part four provides discussions on key issues and the fifth
presents concluding remarks and recommendations.