In 2022, the Number of Small Business Owners Slightly Increased, but Workers Decreased

Announcement of the 2022 Small Business Survey Preliminary Results

The number of small business establishments in 2022 slightly increased compared to the previous year, but the number of workers decreased, according to a survey. The Ministry of SMEs and Startups (Minister Lee Young) and Statistics Korea (Commissioner Lee Hyung-il) jointly announced the provisional results of the "2022 Small Business Survey" on the 27th. The Ministry of SMEs and Startups and Statistics Korea conduct this survey annually to use as basic data for establishing small business support policies.

Looking at the status of establishments and workers in 11 major small business sectors in 2022, the number of establishments was 4.125 million, a 0.2% increase compared to the previous year (2021). By sector, the number of establishments increased in education services and repair/other services, but decreased in accommodation/food services and arts/sports/leisure sectors.

The number of small business workers was recorded at 7.143 million, a 0.9% decrease compared to the previous year. By sector, the number of workers increased in education services and arts/sports/leisure, while it decreased in wholesale/retail, other industries, and manufacturing.

Examining the management performance and debt status of small businesses, the annual sales per establishment were 234 million KRW, a 4.0% increase from the previous year. Annual operating profit was 31 million KRW, up 10.1% from the previous year. The proportion of establishments holding debt was 59.3%, similar to the previous year (59.2%), but the debt amount per establishment increased by 6.1% to 185 million KRW.

The management difficulties perceived by small business owners (multiple responses) were ranked as intensified competition (46.6%), raw material costs (39.6%), decline of commercial districts (37.7%), rent (13.5%), and minimum wage (10.4%).

Won Young-jun, Director of the Small Business Policy Office at the Ministry of SMEs and Startups, said, "In 2022, as recovery to normal life gradually took place, we were able to confirm positive changes such as increases in sales and operating profits of small businesses. However, increased debt and high interest rates likely made the management environment challenging for small business owners." He added, "The Ministry of SMEs and Startups plans to ease the management burden of small businesses by establishing a foundation for sales growth through nationwide consumption activation events such as the Donghaeng Festival next year, as well as by promoting low-interest fund supply and electricity bill reduction support."

The Ministry of SMEs and Startups plans to use the finalized results expected in February next year as reference data for establishing support policies for small business owners and self-employed individuals.