The developments in business initiated in 1989 were accompanied by actions aimed at adjusting the property structure of our economy to the capitalist standards. This article is an attempt to summerize deliberations on the dominance of private over public property. So far, there are many theories in the academic achievements concerning the effectiveness of both property forms. Their qualities determine human behaviour, leading to various actions which influence labour efficiency and productivity of engaged resources. In her paper the author presents, based on selected theories, arguments for privatization of state subjects characterized by lower effectiveness of management than private subjects. Verification of the adopted in theories regularities could be achieved by conducting empirical research within the scope of the effectiveness of the privatization carried out in Poland in recent 20 years. However, an analysis of statistical data concerning the life cycle of privatized subjets provides contradictory information. It is true, there is a number of enterprises which, owing to the fact that they had changed the form of property, improved their financial condition and the level of competitiveness. However, there are such firms that terminated their operations through liquidation or bankrupcy. Nevertheless, the subjects of the private sector are certainly much more efficient in relation to management of resources which, consequently, directly determines the financial results of their business activities.