
The enterprising spirit of Gujarat 8212; a strength state government hard-sells 8212; takes a beating on this front. For, the fifth National Economic Census carried out by the Central Statistical Organisation CSO, which comes under the Union Ministry of Statistics and Programme Implementation MoSPI, presents a bleak view as far as small business in the state are concerned.
Figures of the latest census, that measured enterprise growth between 1998 and 2005 among other features, paint a picture of stagnation for State8217;s small business.
For enterprise growth, Gujarat is put behind 23 other states, with its average annual growth of 3.4 per cent, well below the national average of 4.8.
Highest growth during the census period was recorded by the north-eastern state of Mizoram at 9.6 per cent.
For the purposes of the census, an enterprise has been defined as an undertaking involved in the production and/or distribution of goods/services not for the sole purpose of consumption by itself. This could include shops, offices, and other one-person establishments involved in product selling or service provisions.
In terms of number of enterprises too, Gujarat stands a distant eighth with its 24.18-lakh establishments. It lags behind West Bengal, Uttar Pradesh, Tamil Nadu, Maharashtra, Kerala, Karnataka, and Andhra Pradesh.
The low growth trend is reflected in the employment potential of the enterprises in the state, with the average annual growth in total employment for Gujarat standing at 1.39 against the national figure of 2.49 per cent. This is among the slowest rates of growth with 26 states from the country ahead of Gujarat.
An analysis of the provisional results available on the MOSPI website shows competitive neighbour Maharashtra is way ahead, having more than 10 per cent of the total enterprises, and employing more than 11 per cent of the total employed.
Of the 42 million enterprises in the country that employ 98.97 million people, five states 8212; Tamil Nadu, Maharashtra, West Bengal, Andhra Pradesh, and Uttar Pradesh 8212; together account for more than 50 per cent of enterprises, and 49 per cent of the work force.