The Hindu Editorial Analysis- 18th July 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

ASUSE Overview 

• National Sample Survey Office (NSSO) under the Ministry of Statistics and Programme Implementation is responsible for conducting the Annual Survey of Unincorporated Sector Enterprises (ASUSE).

• Proprietorships: Businesses owned and run by one individual.
• Partnerships: Businesses owned by two or more individuals, excluding Limited Liability Partnerships (LLPs).
• Self-Help Groups (SHGs): Community-based groups that support members in their entrepreneurial endeavors.
• Co-operatives: Organizations owned and run jointly by their members, who share the profits or benefits.
• Societies/Trusts: Non-profit organizations established for the promotion of social, cultural, educational, or charitable objectives.

About Unincorporated Enterprises

Definition:

• An unincorporated enterprise is a producer unit that is not a separate legal entity from its owner.
• Ownership of Assets: The fixed and other assets used in these enterprises are owned by the individuals or groups running them, not by the enterprises themselves.
• Legal and Financial Activities:
  • These enterprises cannot independently engage in transactions or enter into contractual relationships with other economic units.
  • They also cannot incur liabilities on their own behalf; liabilities are the responsibility of the owners.

Key Highlights of ASUSE Survey (2022-23)

• The number of establishments in the unincorporated sector grew by 5.88% from the previous year (2021-22), reaching a total of 6.50 crore establishments.
  • Rural Contribution: Approximately 55% of these establishments are located in rural areas, highlighting the sector's significant presence outside urban centers.

Geographical Highlights:

• The states with the highest number of establishments in this sector are:
  • Uttar Pradesh
  • West Bengal
  • Maharashtra

Economic Indicators:

• Gross Value Added (GVA):
  • The GVA, which measures the value of goods and services produced, showed an increase of 9.83% from the previous year (2021-22).
• Women Entrepreneurs:
  • Women led 54% of proprietary establishments in the manufacturing sector, indicating a strong presence of female entrepreneurship in this industry.

Technological Adoption:

• Digitization:
  • There was a 7.2% increase in the use of the internet for entrepreneurial purposes, reflecting a growing trend towards digitization in business operations.

Financial Indicators:

• Credit Availability:
  • The average outstanding loan per establishment increased to Rs. 50,138 in 2022-23, indicating an improvement in access to credit.

Significance of Unincorporated Enterprises

Economic Contribution:

• GDP Contribution: These enterprises play a pivotal role in contributing to the country's GDP.
• Employment: They generated employment for 11 crore workers in 2022-23, making them a critical source of jobs in the economy.

Supply Chain Integration:

• Support Role: Unincorporated enterprises act as suppliers and service providers to the incorporated sector, thus forming an integral part of the supply chain.

Challenges Faced by Unincorporated Enterprises

Credit Access:

• Formal Credit: Many of these enterprises face challenges in accessing formal financial resources and credit facilities.

Regulatory Issues:

• Lack of Registrations: A significant number of these enterprises are not formally registered, which limits their ability to access certain benefits and protections.
• Regulatory Oversight: The minimum regulatory oversight means these enterprises are often vulnerable to economic shocks and changes in policy, impacting their stability and growth.