Growth of Small Businesses in India: Sector grew by 12.8% compared to the previous year.
A recent survey reveals that small enterprises across manufacturing, trade, and services have employed over 12 crore workers between October 2023 and September 2024. This marks an impressive addition of more than one crore employees since the previous year. The total number of small business units has also surged from 6.5 crore to over 7.3 crore during the same period. These findings highlight the sector’s robust recovery from the challenges posed by the Covid-19 pandemic.
Employment Growth in the Small Business Sector
The Annual Survey of Unincorporated Sector Enterprises (ASUSE) for 2023-24 provides a comprehensive overview of the non-farm unincorporated sector. This survey tracks various economic and operational parameters, revealing a 10.1% increase in total employment from October 2023 to September 2024. The number of establishments in this sector grew by 12.8% compared to the previous year.
This growth is largely attributed to the services sector, which has seen remarkable advancements. Establishments in this sector rose by 23.6%, while employment surged by 17.9%. Additionally, the gross value added—a key measure of economic activity—experienced a significant increase of 26.2%. The average emoluments per hired worker also saw a rise, climbing from Rs 124,842 in 2022-23 to Rs 141,071 in 2023-24. This upward trend in employment and wages indicates a positive shift in the small business landscape, showcasing its resilience and potential for further growth.
The Role of Women in Small Business Ownership
Another noteworthy finding from the ASUSE survey is the increasing participation of women in small business ownership. The percentage of female-owned proprietary establishments rose from 22.9% in 2022-23 to 26.2% in 2023-24. This trend reflects a positive shift in female entrepreneurship, highlighting the growing role of women in the business sector.
The rise in female ownership is essential for fostering diversity and inclusivity in the economy. It also contributes to the overall growth of the small business sector. As more women engage in entrepreneurship, they bring unique perspectives and innovations that can drive business success. This shift not only empowers women but also strengthens the economic fabric of the country.
Technology Adoption Among Small Businesses
The ASUSE survey also indicates a significant increase in technology adoption among small businesses. The percentage of establishments utilizing the internet grew from 21.1% in 2022-23 to 26.7% in 2023-24. This rise in digital engagement highlights the increasing importance of technology in enhancing business operations and reaching customers. The adoption of digital tools can lead to improved efficiency, better customer service, and expanded market reach. Small businesses that embrace technology are better positioned to compete in today’s fast-paced economy. This trend is crucial for their long-term sustainability and growth, especially in a post-pandemic world where digital transformation is key to success.
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