Current Economic Statistics and Review For the Week Ended September 15

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Current Economic Statistics and Review For the Week
Ended August 23, 2008 (34^thWeekly Report of 2008)

Theme of the week:

Economic Census – 3

Special Characteristics of Enterprises*

One of the main tasks of a national statistical system is to provide the country’s planners and policy makers with information on various aspects of economic, social and related activities in terms of their contributions to national economy and life on a time series basis. Information on some activities, though small in terms of contribution but huge in terms of absorbing employment, was sparsely available through surveys and studies. Economic Censuses conducted by the Central Statistical Organisation (CSO) strives to mitigate this deficiency to a great extent as it tries to give more or less comprehensive information such as number of enterprises in rural and urban areas, the number of persons employed, etc. These censuses, in addition to giving basic information on different characteristics of individual enterprises, provide detailed structural features, viz., (i) whether enterprises are of seasonal or perennial character, (ii) whether enterprises are using power/fuel or not, (iii) whether enterprises are operating from fixed premises or not, (iv) what is the ownership character of industries with details of social groups owning them, and (v) how are the industries distributed according to size of employees.

Earlier two notes on the subject briefly discussed the objective, scope and strengths and weaknesses of the Economic Census studies and the trend growth of enterprises along the different censuses. This note, the third in the series, throws up a picture of some specialised characteristics of enterprises as revealed by the census results.

1. Seasonal and Perennial Enterprises

a. All enterprises (agricultural and non-agricultural enterprises)

Table 1 gives a comparative picture of growth rates of seasonal and perennial enterprises as between the successive censuses over the past 25 years. Obviously, the

Table 1 : Special Characteristics : Perennial and Seasonal Enterprises											(' 000 nos)
	1980			1990			1998			2005
	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All
All Sector (Agricultural + Non-Agricultural) (Agricultural excludes crop husbandry)
All Enterprises
Number	11141	7220	18362	14722	10280	25002	17708	12641	30349	25536	16291	41827
Seasonal	941	170	1111	1333	245	1579	1757	346	2103	1886	331	2217
Perinneal	10200	7050	17250	13389	10035	23423	15949	12296	28245	23650	15960	39610
Own-account Enterprises
Number	8646	4733	13379	11317	6365	17683	13601	7775	21376	18110	8830	26940
Seasonal	751	122	873	1068	171	1239	1432	231	1663	1381	200	1580
Perinneal	7895	4612	12507	10249	6195	16444	12169	7544	19713	16729	8629	25358
Establishment with at-least one hired worker
Number	2495	2487	4982	3405	3915	7319	4107	4866	8973	7426	7461	14887
Seasonal	191	48	239	265	75	340	325	115	441	505	130	635
Perinneal	2305	2439	4744	3140	3840	6980	3780	4752	8232	6921	7331	14252
Compounded Annual Growth Rate - All Sector ( Agricultural + Non-Agricultural)
	1980-90			1990-98			1998-2005			1980-2005
All Enterprises
Number	(2.83)	(3.60)	(3.14)	(2.34)	(2.62)	(2.45)	(5.37)	(3.69)	(4.69)	(3.37)	(3.31)	(3.35)
Seasonal	(3.54)	(3.75)	(3.57)	(3.51)	(4.38)	(3.49)	(1.02)	(-0.63)	(0.93)	(2.82)	(2.70)	(2.80)
Perinneal	(2.76)	(3.59)	(3.11)	(2.21)	(2.57)	(2.38)	(5.79)	(3.80)	(4.94)	(3.42)	(3.32)	(3.38)
Own-account Enterprises
Number	(2.73)	(3.01)	(2.83)	(2.32)	(2.53)	(2.40)	(4.18)	(1.83)	(3.36)	(3.00)	(2.53)	(2.84)
Seasonal	(3.59)	(3.44)	(3.57)	(3.73)	(3.84)	(3.75)	(-0.52)	(-2.04)	(-0.73)	(2.47)	(2.00)	(2.40)
Perinneal	(2.64)	(2.99)	(2.77)	(2.17)	(2.49)	(2.29)	(4.65)	(1.94)	(3.66)	(3.05)	(2.54)	(2.87)
Establishment with at-least one hired worker
Number	(3.16)	(4.64)	(3.92)	(2.37)	(2.76)	(2.58)	(8.83)	(6.30)	(7.50)	(4.46)	(4.49)	(4.48)
Seasonal	(3.35)	(4.48)	(3.59)	(2.58)	(5.56)	(3.32)	(6.50)	(1.80)	(5.36)	(3.98)	(4.07)	(3.99)
Perinneal	(3.14)	(4.65)	(3.94)	(2.35)	(2.70)	(2.58)	(9.02)	(6.39)	(7.56)	(4.50)	(4.50)	(4.50)
* : Economic censuses have not been conducted for Assam in 1980 and for J & K in 1990.
Source: CSO(2008) : Economic Census 2005 - All India Report and earlier issues

perennial enterprises have always dominated and also grown at a faster pace. The number of such perennial enterprises have expanded from 17.3 million in 1980 to 39.6 million in 2005, that is, by 22.3 million or at a compounded annual growth rate (CAGR) of 3.38 per cent.

During the same period 1980-2005, as 1.1 million seasonal enterprises have been added at a CAGR of 2.8 per cent. In both seasonal and perennial enterprises, the growth has been slightly higher in rural areas than in urban areas. The growth was faster between the latest two censuses i.e., between 1998 and 2005.

Secondly, in both rural and urban areas, the rate of growth of own-account enterprises has been much slower than the growth in establishments with at least one hired labour. The CAGR in own-account perennial enterprises during the 25-year period at 2.87 per cent was much lower than that of 4.5 seen in perennial establishment with at least one worker. Thus, the share of seasonal enterprises was only 6.1 per cent in 1980 and it has slid further from 6.1 per cent in 1980 to 5.1 per cent in 2005. The substantial fall in own-account seasonal enterprises especially in urban areas during 1998-2005 was the main reason for the declining trend. This reflects the substantial structural changes taking place in the economy. A negative CAGR of 0.73 per cent was witnessed in own-account seasonal enterprises. Even urban seasonal establishment also registered a declining growth rate over the censuses.

b) Agricultural Enterprises (excluding crop husbandry)

The number of seasonal agricultural enterprises rose from 209,000 in 1980 to 808,000 enterprises according EC-2005 . However the growth rate registered a declining trend over different censuses. Between 1980 and 1990, CAGR was 8.2 per cent which declined to 5.0 per cent in the period 1990-1998 then to 2.7 per cent during 1998-2005.

The average annual growth rate during the 25-year period works out to 5.6 per cent. However, the number of perennial agricultural enterprises steadily rose during the period with a compounded annual average growth rate of 5.9 per cent during the 25-year period. The trend was the same both in rural and urban areas. While the trend depicted by own-account enterprises was same as that depicted by all enterprises, the seasonal agricultural establishment with at-least one hired worker there was a notable increase between 1998 and 2005 (Table 2).

Table 2 : Special Characteristics : Perennial and Seasonal Enterprises											(' 000 nos)
	1980			1990			1998			2005
	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All
Agricultural Sector :
All Enterprises
Number	1284	174	1458	2097	235	2332	3201	274	3475	5709	371	6080
Seasonal	198	10	209	438	19	457	643	29	672	783	25	808
Perennial	1086	164	1249	1659	216	1876	2556	246	2802	4926	346	5272
Own-Account Enterprises
Number	1095	135	1230	1844	186	2030	2886	217	3103	4848	284	5132
Seasonal	166	7	174	385	15	400	580	23	603	637	19	656
Perennial	928	128	1057	1459	171	1630	2306	194	2500	4211	265	4476
Establishment with at-least one hired worker
Number	189	38	228	253	49	302	314	58	372	861	87	948
Seasonal	32	3	35	53	4	57	64	6	70	146	6	152
Perennial	157	36	193	201	45	245	250	52	302	715	81	796
Compounded Annual Growth Rate
	1980-90			1990-98			1998-2005			1980-2005
All Enterprises
Number	(5.03)	(3.07)	(4.81)	(5.43)	(1.93)	(5.11)	(8.62)	(4.42)	(8.32)	(6.15)	(3.08)	(5.88)
Seasonal	(8.23)	(6.54)	(8.16)	(4.92)	(5.44)	(4.95)	(2.85)	(-2.10)	(2.67)	(5.64)	(3.70)	(5.57)
Perennial	(4.33)	(2.82)	(4.15)	(5.55)	(1.63)	(5.15)	(9.83)	(4.99)	(9.45)	(6.24)	(3.04)	(5.93)
Own-Account Enterprises
Number	(5.35)	(3.25)	(5.14)	(5.76)	(1.92)	(5.45)	(7.69)	(3.92)	(7.45)	(6.13)	(3.01)	(5.88)
Seasonal	(8.76)	(7.69)	(8.71)	(5.25)	(5.37)	(5.26)	(1.35)	(-2.69)	(1.21)	(5.52)	(3.95)	(5.46)
Perennial	(4.62)	(2.95)	(4.43)	(5.89)	(1.57)	(5.49)	(8.98)	(4.56)	(8.68)	(6.23)	(2.95)	(5.94)
Establishment with at-least one hired worker
Number	(2.95)	(2.40)	(2.86)	(2.72)	(2.21)	(2.64)	(15.50)	(5.96)	(14.30)	(6.25)	(3.33)	(5.87)
Seasonal	(5.07)	(3.00)	(4.91)	(2.47)	(5.71)	(2.71)	(12.50)	(0.00)	(11.71)	(6.24)	(3.00)	(6.05)
Perennial	(2.47)	(2.35)	(2.45)	(2.79)	(1.87)	(2.63)	(16.20)	(6.54)	(14.85)	(6.25)	(3.35)	(5.84)
* : Economic censuses have not been conducted for Assam in 1980 and for J & K in 1990.
Source: CSO(2008) : Economic Census 2005 - All India Report and earlier issues

c) Non-Agricultural Sector

There was an increase in the number of seasonal non-agricultural enterprises from 903,000 to 1,409,000 between 1980 and 2005, the CAGR between the censuses decreased from 2.2 per cent during 1980-90 to 0.03 per cent during 1998-2005. Overall CAGR was only 1.8 per cent during the 25-year period (Table 3). The perennial non-agricultural enterprises more than doubled during the 25-year period 1980-2005.

While the number of seasonal own-account non-agricultural enterprises rose from 699,000 in 1980 to 925,000 in 2005, own-account perennial non-agricultural enterprises increased from 11450 thousands to 20880 thousands during the period 1980 to 2005.

Table 3 : Special Characteristics : Perennial and Seasonal Enterprises											(' 000 nos)
	1980			1990			1998			2005
	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All
Non-Agricultural Sector
All Enterprises
Number	9857	7046	16904	12625	10045	22670	14507	12367	26874	19827	15920	35747
Seasonal	743	160	903	895	226	1122	1114	317	1431	1103	306	1409
Perennial	9114	6887	16001	11730	9819	21548	13393	12050	25443	18724	15614	34338
Own-Account Enterprises
Number	7551	4598	12149	9474	6179	15653	10715	7558	18273	13262	8546	21808
Seasonal	584	115	699	683	156	839	852	208	1060	744	182	925
Perennial	6967	4484	11450	8790	6023	14814	9863	7350	17213	12518	8364	20882
Establishment with at-least one hired worker
Number	2306	2448	4755	3152	3866	7017	3792	4809	8601	6565	7374	13939
Seasonal	158	45	204	212	71	283	262	109	371	359	124	483
Perennial	2148	2403	4551	2939	3795	6734	3530	4700	8230	6206	7250	13456
Compounded Annual Growth Rate
	1980-90			1990-98			1998-2005			1980-2005
All Enterprises
Number	(2.51)	(3.61)	(2.98)	(1.75)	(2.63)	(2.15)	(4.56)	(3.67)	(4.16)	(2.83)	(3.31)	(3.04)
Seasonal	(1.89)	(3.55)	(2.20)	(2.77)	(4.29)	(3.09)	(-0.14)	(-0.51)	(-0.22)	(1.59)	(2.63)	(1.80)
Perennial	(2.56)	(3.61)	(3.02)	(1.67)	(2.59)	(2.10)	(4.90)	(3.77)	(4.38)	(2.92)	(3.33)	(3.10)
Own-Account Enterprises
Number	(2.29)	(3.00)	(2.57)	(1.55)	(2.55)	(1.95)	(3.09)	(1.77)	(2.56)	(2.28)	(2.51)	(2.37)
Seasonal	(1.57)	(3.12)	(1.84)	(2.80)	(3.68)	(2.97)	(-1.92)	(-1.92)	(-1.92)	(0.97)	(1.86)	(1.13)
Perennial	(2.35)	(3.00)	(2.61)	(1.45)	(2.52)	(1.89)	(3.46)	(1.86)	(2.80)	(2.37)	(2.53)	(2.43)
Establishment with at-least one hired worker
Number	(3.17)	(4.67)	(3.97)	(2.34)	(2.77)	(2.58)	(8.16)	(6.30)	(7.14)	(4.27)	(4.51)	(4.40)
Seasonal	(2.97)	(4.57)	(3.35)	(2.66)	(5.56)	(3.44)	(4.61)	(1.90)	(3.86)	(3.33)	(4.13)	(3.52)
Perennial	(3.19)	(4.68)	(4.00)	(2.32)	(2.71)	(2.54)	(8.39)	(6.39)	(7.28)	(4.34)	(4.52)	(4.43)
* : Economic censuses have not been conducted for Assam in 1980 and for J & K in 1990.
Source: CSO(2008) : Economic Census 2005 - All India Report and earlier issues

Perennial non-agricultural establishment almost tripled between 1980 and 2005 by adding 8.9 million perennial non-agricultural enterprises with at least one hired worker.

2. Enterprises Using Power/Fuel

If any or more sources of power/fuel are specifically used for carrying the entrepreneurial activity (other than for lighting or heating the premises) , it is considered as power/fuel used. The different sources of power/fuel are electricity, coal/soft coke, petrol/diesel, firewood, kerosene, animal power, non-conventional energy (bio gas, solar and wind energy) and atomic power. Enterprises using none of this type of power/fuel are categorized as operating without power.

a) All Sector (agricultural and non-agricultural sector)

Overall growth of enterprises using power/fuel had increased from 4.3 per cent (1980-1990) to 7.2 per cent (1998-2005). The overall growth during 25-years period works out to 4.9 per cent. While the growth in own-account enterprise using power/fuel at 4.2 per cent was less than that of all enterprises that of establishment with at least one hired workers was a clear one per cent more than 4.9 per cent growth witnessed in all enterprises (Table 4).

Table 4 : Special Characteristics : Enterprises With or Without Power											(' 000 nos)
	1980			1990			1998			2005
	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All	Rural	Urban	All
All Sector
All Enterprises
Number	11142	7220	18361	14722	10280	25002	17707	12642	30349	25536	16291	41827
With power	1729	1319	3048	2563	1798	4361	3293	2897	6191	5399	4684	10082
Without Power	9413	5900	15313	12159	8482	20641	14414	9745	24158	20137	11607	31745
Own-Account Enterprises
Number	8646	4733	13379	11317	6365	17683	13601	7775	21376	18110	8830	26940
With power	1267	632	1900	1804	965	2770	2267	1436	3703	3223	2030	5252
Without Power	7379	4101	11480	9513	5400	14913	11334	6339	17673	14887	6800	21688
Establishment with at-least one hired worker
Number	2496	2487	4982	3405	3915	7319	4106	4867	8973	7426	7461	14887
With power	462	687	1149	759	833	1592	1026	1461	2488	2176	2654	4830
Without Power	2034	1800	3834	2646	3082	5728	3080	3406	6485	5250	4807	10057
Compounded Annual Growth Rate
	1980-90			1990-98			1998-2005			1980-2005
All Enterprises
Number	(2.83)	(3.60)	(3.14)	(2.33)	(2.62)	(2.45)	(5.37)	(3.69)	(4.69)	(3.37)	(3.31)	(3.35)
With power	(4.02)	(3.14)	(3.65)	(3.18)	(6.14)	(4.48)	(7.32)	(7.10)	(7.22)	(4.66)	(5.20)	(4.90)