New Delhi, May 1 (KNN) According to the first pilot study on Annual Survey of Services Sector Enterprises (ASSSE), Services enterprises with an output of less than Rs 500 crore accounted for over 63 per cent of total employment in India.

The study reveals a stark contrast in economic contributions between smaller and larger enterprises. While smaller businesses dominate employment, larger enterprises—those with an output of Rs 500 crore and above—hold significant shares in key economic metrics.

These include 62.77 per cent of total asset ownership, 62.73 per cent of net fixed capital formation, 69.47 per cent of gross value added, and 63.17 per cent of total compensation.

The data also highlights that the majority of corporate entities surveyed were private limited companies, comprising 82.40 per cent of the total.

Public limited companies and limited liability partnerships made up nearly 8 per cent each, a trend consistent across sectors such as construction, trade, and other services.

Furthermore, the study showed that 28.5 per cent of enterprises operated multiple business locations within the same state. The highest concentration of such enterprises was in the trade sector, where 41.8 per cent had additional premises.

Despite the valuable insights, the survey faced challenges, particularly in separating GSTIN-level data for enterprises from centralized pan-India records.

Nevertheless, the data provides a comprehensive look at the structure and impact of enterprises in India’s service sector.

This study sheds light on the significant role of smaller enterprises in driving employment while illustrating the dominance of larger companies in shaping economic outcomes.

(KNN Bureau)