December 25, 2024, India: The Annual Survey of Unincorporated Sector Enterprises (ASUSE) revealed that over 12 crore workers were employed across the manufacturing, trade, and services sectors, marking a significant recovery from the pandemic. according to a recent survey. , Small businesses in India’s non-farm sectors have experienced remarkable growth between October 2023 and September 2024.
With more than one crore new jobs added and a 13% rise in the number of establishments, the Report highlights the resilience and vital role of small businesses in driving economic recovery and growth.
Key Highlights from the ASUSE Survey
The The Annual Survey of Unincorporated Sector Enterprises (ASUSE), released on Tuesday, sheds light on the expansion of small enterprises, emphasizing their growing impact on the economy.
Job Growth and Economic Recovery
Between October 2023 and September 2024, the number of workers employed by small businesses grew by 10.1%, reaching over 12 crore. This is a major recovery, with the number of establishments rising from 6.5 crore to 7.3 crore in the same period.
Services Sector Leads Growth
The services sector has seen the most notable growth, with a 23.6% increase in establishments and a 17.9% rise in employment. Gross value added (GVA), a key economic metric, grew by 26.2%, underscoring the sector’s recovery. This boom has helped boost overall employment and economic activity in India’s small business landscape.
Improved Wages and Productivity
The average emoluments for workers have also seen a notable rise, increasing by 13% from Rs 124,842 in 2022-23 to Rs 141,071 in 2023-24. This increase signals a positive trend towards better compensation for workers, reflecting the overall improvement in the sector’s financial health.
Rise in Female Entrepreneurship
Another significant trend emerging from the ASUSE report is the rise in female participation in business ownership. The percentage of female-owned proprietary establishments has increased from 22.9% in 2022-23 to 26.2% in 2023-24. This growth highlights the shift towards greater female entrepreneurship and underscores the expanding role of women in the small business ecosystem.
Technological Adoption on the Rise
The ASUSE report also reveals a growing adoption of digital technologies by small businesses. The percentage of establishments using the internet has grown from 21.1% in 2022-23 to 26.7% in 2023-24, reflecting the increasing integration of digital tools in small businesses’ operations. This technological adoption is playing a crucial role in enhancing productivity and ensuring long-term sustainability.
The Road Ahead for Small Businesses
As small businesses continue to thrive, their role in driving job creation and economic recovery becomes even more critical. The unincorporated non-agricultural sector, which encompasses small-scale manufacturing, trade, and services, is set to remain a cornerstone of India’s economy, contributing significantly to both employment and GDP growth.
Saurabh Garg, Secretary at the Ministry of Statistics and Programme Implementation, noted the importance of this sector in supporting economic recovery and providing jobs across the country. He emphasized that small businesses are pivotal in driving inclusive growth, especially in the post-pandemic era.
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