Small Business Sentiment in October Hits Highest Level in Five Years
Small Business Business Survey Index (BSI) Hits Five-Year High
November Outlook BSI Also Marks Highest Level This Year
The Ministry of SMEs and Startups announced on November 12 that the Small Business Business Survey Index (BSI) reached 79.1 in October, marking the highest figure in the past five years. The Small Business BSI is an indicator released based on the monthly 'Small Business Market Business Survey,' which assesses the business conditions and outlook for small businesses and traditional markets. It is a national approved statistic under the Statistics Act.
The perceived BSI for small businesses quantifies the actual business conditions felt by small business owners during the month. The October figure of 79.1 represents a 2.5-point increase compared to the previous month. Comparing the BSI trend over the past year to the previous year, there was a decline from the end of last year to the beginning of this year due to weakened consumer sentiment, seasonal factors, and increased holiday expenses. There was a partial recovery in March due to seasonal peak factors, but the index stagnated in April following the announcement of U.S. tariff impositions. Since the launch of the new government in June, the BSI has shown a steady upward trend.
In particular, the BSI saw a significant increase between August and October, when the government’s consumption-boosting programs-such as livelihood recovery coupons and win-win payback-were actively implemented, resulting in the record-high figure in October. By sector, the largest month-on-month increases were seen in sports and entertainment-related services (+12.5 points), personal services (+9.5 points), and repair services (+7.2 points). By region, Ulsan (+15.2 points), Sejong (+11.4 points), and Jeonbuk (+8.6 points) recorded the largest increases. By category, sales performance (+3.8 points), financial conditions (+3.2 points), and number of customers (+2.8 points) saw the largest month-on-month gains.
The outlook BSI for small businesses, which quantifies owners’ expectations for the following month, reached 90.7 for November, up 3.9 points from the previous month. This is the highest figure recorded this year. By sector, repair services (+13.5 points), restaurants (+10.3 points), and professional/scientific/technical services (+7.7 points) saw the largest increases. By region, Ulsan (+19.8 points), Incheon (+14.0 points), and Daegu (+9.7 points) led the gains. By category, sales performance (+5.2 points), number of customers (+4.4 points), and financial conditions (+3.2 points) saw the largest increases compared to the previous month.
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Lee Daegun, Director of Small Business Policy, stated, "It appears that the various consumption-boosting policies implemented in the second half of this year have contributed to the improvement in the perceived BSI," adding, "As expectations for a year-end economic boom are reflected in the outlook BSI, we will ensure that scheduled policies, such as the relay consumption promotion events in the second half, are carried out without any setbacks."
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