Small firms record sharp rise in digital transactions

NEW DELHI: The use of internet for entrepreneurial purposes such as taking and placing orders online, carrying out transactions online or using UPIs by unincorporated enterprises has increased to 13.5 per cent from 7.7 in rural and to 30.2 per cent from 21.6 in urban sector during 2022-23, according to the latest survey released by the Ministry of Statistics.

This shows an improved use of IT and digital platforms and indicates a fast rate of digitisation in the sector, the annual survey of the unincorporated sector enterprises says.

According to the survey, the unincorporated sector has witnessed growth in the estimated number of establishments by 5.88 per cent, in the estimated number of workers by 7.84 per cent and in gross value added by 9.83 per cent.

The sector has also demonstrated enhanced capital investment, greater accessibility to loans, and increased utilisation of information technology.

"Fixed assets owned by an unincorporated non-agricultural establishment, on average, have risen from Rs 2.81 lakh in 2021-22 to Rs 3.18 lakh in 2022-23 showing an improved capital investment in the sector. At the same time, outstanding loan per establishment has increased from Rs 37,408 in 2021-22 to Rs 50,138 in 2022-23, indicating an improvement in the availability of loans in this sector," the report noted.

The survey also points out that about 54 per cent of the proprietary establishments in the manufacturing sector were run by women entrepreneurs.

This reflects the success of the government schemes aimed at empowering women.