The number of small business owners and workers increased, but the number of people employed by each enterprise declined. Analysts said the burden of competition and expense has sharpened the pattern of a small-scale "one-person-centered structure."
The Ministry of SMEs and Startups and the Small Enterprise and Market Service released the 2024 survey on the status of small businesses on the 13th. The small business status survey is conducted annually to establish support policies for small business owners and the self-employed.
According to the results, as of 2024, the number of small business enterprises in Korea was 6,134,000, up from 5,961,000 a year earlier. The number of workers also rose to 9,610,000 from 9,551,000 a year earlier, but the average number of workers per enterprise fell to 1.57 from 1.6 a year earlier. Compared to a year earlier, the number of enterprises and workers increased, while the average number of workers per enterprise edged down.
By industry, wholesale and retail had the most enterprises at 2,100,000 (34.2%). Real estate followed with 862,000 (14.0%), and lodging and food service with 796,000 (13.0%). Construction and manufacturing were counted at 568,000 and 537,000, respectively.
By industry, the number of workers was also highest in wholesale and retail at 3,039,000 (31.6%). It was followed by lodging and food service (1,423,000; 14.8%), manufacturing (1,263,000; 13.1%), construction (1,077,000; 11.2%), and real estate (1,047,000; 10.9%).
Small business owners using digital and smart technologies accounted for 27.2% of the total, up 9.2 percentage points from a year earlier. Areas of use were online sales channels (49.0%), store management (34.4%), management software (19.6%), and smart ordering and payment (15.2%), it was found.
Startup expense was 83 million won (59 million won out of pocket), down from 89 million won a year earlier (64 million won out of pocket). The top motivation for starting a business was "to directly run one's own business" at 65.7%. It was followed by "because income seemed likely to be higher (18.1%)" and "because it was difficult to find a wage job (15.8%)."
The business difficulties felt by small business owners were identified in the following order: intensifying competition (61.0%), materials and supplies costs (49.6%), decline of commercial districts (33.5%), deposit and monthly rent (28.6%), and the minimum wage (17.5%).
Starting with this survey, financial items that can be verified objectively, such as National Tax Service and financial sector data (sales and operating expense, etc.), were excluded from the questionnaire.
Lee Byeong-gweon, the second vice minister of the Ministry of SMEs and Startups (MSS), said, "Based on National Tax Service data, we expect to secure accurate financial data going forward, and we plan to analyze the real-time policy effects on neighborhood commercial districts and traditional markets in cooperation with private data companies," adding, "Through a small business database, we will also provide tailored policy information by target group and push for innovation in data-based administration and statistical governance."