The number of domestic small business corporations is 5,961,000, with a total of 9,551,000 employees. This represents increases of 44.5% and 33.8%, respectively, compared to the previous year. In contrast, the annual sales of small business corporations decreased by 14.9% to 199 million won, and their operating profit fell by 19.3% to 25 million won. This is interpreted as being influenced by high interest rates, high prices, and an economic downturn.
The Ministry of SMEs and Startups announced the '2023 Small Business Status Survey (provisional)' on the 27th.
According to the survey results, the number of small business corporations in 11 major industries in 2023 is 5,961,000, which is an increase of 44.5% compared to 4,124,000 in 2022. During the same period, the number of employees increased by 33.8% to 9,551,000. The number of employees per corporation was 1.6.
The Ministry noted that this survey should be interpreted with caution as it includes personal real estate rental businesses that do not have a physical location and do not have wage employees, making year-on-year comparisons somewhat difficult.
Looking at the number of corporations by industry, the retail and wholesale industry had the most at 2 million (33.6%), followed by the real estate industry with 854,000 (14.3%) and the accommodation and food services industry with 790,000 (13.3%). Next were the manufacturing industry (554,000; 9.3%) and the construction industry (551,000; 9.2%).
In terms of the number of employees by industry, the retail and wholesale industry accounted for the largest share, with 2,991,000 employees (31.3%), followed by the accommodation and food services industry (1,406,000; 14.7%), the manufacturing industry (1,302,000; 13.6%), the construction industry (1,076,000; 11.3%), and the real estate industry (1,076,000; 11.3%).
Regarding the management performance and liability status of small businesses, the annual sales per corporation is 199 million won, which is a decrease of 14.9% from the previous year (234 million won). The operating profit is 25 million won, down by 19.3% from the previous year (31 million won).
In 2023, the proportion of corporations holding liabilities was 60.9% (up from 59.3% in 2022), and the liability per corporation was 195 million won (up from 185 million won in 2022).
In the entrepreneurship motivation survey, 'wanting to manage my own business' was the most cited motivation at 62.6%, followed by 'expecting higher income (28.9%)' and 'difficulty finding employment as a wage worker (5.4%).'
The management challenges perceived by small business owners (multiple responses) included intensifying competition (59.1%), materials and supplies costs (42.1%), decline in commercial districts (36.7%), deposit and rent (25.6%), and minimum wage (14.9%).
Lee Dae-geon, director of small business policy at the Ministry of SMEs and Startups, noted, 'Although 2023 saw a recovery to normalcy, the management conditions for small business owners have likely remained challenging due to increased liabilities and high interest rates and prices.' He stated, 'The Ministry plans to increase the issuance of Onnuri gift certificates to 5.5 trillion won this year to stimulate domestic demand and will hold a Donghaeng Festival in March, while also continuing to support low-interest financing and delivery and shipping fee assistance to alleviate management burdens for small businesses.'