The practice of making a state firm more profit-oriented is

The practice of making a state firm more profit-oriented is known as commercialization. It involves changing the objectives of a state-owned enterprise from non-profit to profit-oriented in order to increase efficiency and profitability. Commercialization is often used as a way to improve the financial performance of state-owned enterprises that may be underperforming due to bureaucratic inefficiencies, lack of investment, or other factors. This process can involve restructuring the enterprise, reducing the size of the workforce, and implementing market-oriented policies to improve productivity and profitability. Unlike privatization, commercialization does not involve transferring ownership of the state-owned enterprise to the private sector. Instead, the government retains ownership and control of the enterprise, but changes its objectives to focus on generating profits. Overall, commercialization is a strategy aimed at making state-owned enterprises more efficient, competitive, and financially sustainable in the long-term.