Input 2020.12.28 12:00
Small business owners are found to earn 33 million won a year by starting an average of 120 million won. The debt was 171 million won.
On the 28th, the Ministry of SMEs and Startups and the National Statistical Office announced the provisional results of the ‘2019 Small Business Survey’. This survey was conducted on 40,000 businesses in 11 industries with a high proportion of small businesses nationwide from August to September this year.
The number of employees was 6.44 million, an increase of 1.9% (120,000) from the previous year, followed by wholesale and retail business (1.87 million), accommodation and restaurant business (24.1%) (1,550,000), manufacturing industry (18.3%) (1.18 million).
The average preparation period per business was 10.2 months (0.7 months↑), and the startup cost was 120 million won (1 million won↓), of which the out-of-pocket cost was 75 million won (73.5%).
Annual sales per business were 235 million won (19.58 million won per month), the level of the previous year. Operating profit was 33 million won (3% ↓, 27.5 million won per month), the business’s debt holding ratio was 51.9% (3.5% ↑), and the amount of debt was 171 million won (5.2% ↓).
As for the type, 90% of individual business owners and 10% of corporate businesses were found, and the most common age group was 50s (34.2%), 40s (26.7%), 60s or older (23.8%), 30s (12.8%) , 20s or younger (2.5%).
The motivation for starting a business was because they wanted to run their own business (58.4%), because they thought they would have more income (33.3%), and because it was difficult to find a job (5.8%). 20.7% of them owned the workplace and 79.3% of them leased. The average deposit was 22.9 million won, and the monthly rent was 1.27 million won.
Management difficulties (multiple responses) were in the order of declining commercial districts (45.1%), intensifying competition (42.2%), raw material costs (26.6%), and rental fees (18.3%). The desired policies (multiple responses) were funding (71.4%), tax support (55.1%), sales channel support (19.1%), and manpower support (12.9%).
The Small and Medium Business Administration plans to use it to reinforce the support system for each life cycle such as start-up → growth → resumption of small businesses and establish customized policies when the final results reflecting the results of this survey are released in February of next year.
An official from the Ministry of SMEs said, “We plan to actively reflect the impact of this year’s Corona 19 incident, accelerating digitization, and non-face-to-face online trends when designing the survey items in the survey of small businesses as of 2020 as of next year.”