Small Businesses In India See Significant Growth; Adding Over 1 Crore Jobs

India’s small businesses across manufacturing, trade, and services sectors have shown remarkable growth. It employed more than 12 crore workers between October 2023 and September 2024, according to the latest data from the Annual Survey of Unincorporated Sector Enterprises (ASUSE).

This reflects an addition of over 1 crore employees compared to the previous year, highlighting the sector’s strong recovery from the impact of the COVID-19 pandemic.

Sector Growth Across Establishments And Employment

The survey, released on Tuesday, revealed that the total number of small business units increased from 6.5 crore in 2022-23 to over 7.3 crore in 2023-24.

This marks a 12.8% growth in the number of establishments and a 10.1% rise in total employment during the period from October 2023 to September 2024, when compared to the previous year.

The growth across key economic metrics, including the number of establishments, workers, wages, and productivity, underscores the sector’s resilience and vital role in the economy.

Rising Female Entrepreneurship And Digital Adoption

The survey also highlights a positive shift in female entrepreneurship. The percentage of female-owned proprietary establishments increased from 22.9% in 2022-23 to 26.2% in 2023-24.

This growth signals an encouraging trend of more women entering business ownership, which is a significant development in promoting gender diversity in entrepreneurship.

Another notable trend is the increasing adoption of technology by small businesses. The percentage of establishments using the Internet grew from 21.1% in 2022-23 to 26.7% in 2023-24.

This rise in digital adoption showcases the growing penetration of technology, which helps small businesses streamline operations and improve competitiveness in the market.

Role Of Small Businesses In Indian Economy

Saurabh Garg, Secretary of the Ministry of Statistics and Programme Implementation, emphasized the importance of the unincorporated non-agricultural sector, which comprises small enterprises in manufacturing, trade, and services.

According to Garg, this sector plays a crucial role in India’s economy, contributing significantly to employment and overall economic growth.

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