Last Year, 80,000 Small Business Workers Decreased... 2030 Startup Rate Increased

Ministry of SMEs and Startups-Statistics Korea, Survey Results Announced
4.12 Million Small Business Establishments
Manufacturing Workers Decrease by 88,000

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The number of small business owners decreased by about 80,000 compared to the previous year. In particular, the decline in manufacturing (-88,000) was prominent. The number of small business establishments also decreased by 10,000.

The Ministry of SMEs and Startups and Statistics Korea announced the provisional results of the "2021 Small Business Owner Survey" on the 27th, which is used as data for policy formulation by understanding the status and management conditions of small business owners.

The number of small business establishments in 11 industries was 4.12 million, down 10,000 (-0.2%) from the previous year. By industry, wholesale and retail trade (22,000) and manufacturing (5,000) decreased, while education services (11,000) and construction (14,000) increased.

Looking at the number of small business workers last year, it was counted at 7.21 million, down 77,000 (-1.1%) from the previous year. Manufacturing (-88,000) and arts, sports, and leisure (-4,000) decreased, while education services (9,000) and accommodation and food services (15,000) increased.

The age group of representatives was highest in their 50s (30.8%, 1.268 million). Compared to the previous year, representatives aged 40 and above decreased, but those in their 20s and 30s increased. In particular, the increase rate for those under 20 was high at 11.7% (22,000).

The primary motivation for starting a business was "wanting to run one's own business," which increased by 1.6 percentage points compared to the previous year. "Difficulty finding employment as a wage worker" was 4.3%, showing a decrease of 2.4 percentage points.

The amount of debt per establishment was 175 million KRW, an increase of 4.2% (7 million KRW) from the previous year, but sales and operating profit increased.

Annual sales per establishment were 225 million KRW, up 2.9% (6 million KRW), and operating profit per establishment increased by 39.8% (8 million KRW) to 28 million KRW.

Minister Lee Young of the Ministry of SMEs and Startups commented, "It is noteworthy that challenge-oriented startups by people in their 20s and 30s increased even though the number of establishments slightly decreased."

He added, "We will strive to foster entrepreneurial small business owners so that promising small business owners with entrepreneurial spirit and creative ideas can grow into global companies."

This content was produced with the assistance of AI translation services.