Small Enterprises Lead in Employment, Large Firms Dominate Assets in Services Sector

A government survey highlights that small enterprises in the services sector, with an output below Rs 500 crore, employ the majority of the workforce, while larger firms, with output above Rs 500 crore, control major assets and compensation. The findings come from a pilot study of the Annual Survey of Services Sector Enterprises.

Recent data from a government survey reveal that small-scale enterprises in the services sector, defined by output under Rs 500 crore, are significant employers, accounting for 63.03% of total employment. The survey, conducted by the Ministry of Statistics & Programme Implementation, highlights these enterprises' critical role despite larger firms' dominance in assets and compensation.

The pilot study for the Annual Survey of Services Sector Enterprises found that larger enterprises wield considerable control over the sector's net fixed capital formation, contributing 62.73% and holding 69.47% of the gross value added. Despite this, smaller enterprises are indispensable for employment across the segment.

Based on the GSTN database, the survey serves as groundwork for launching a comprehensive annual survey in January 2026. Private Limited Companies, making up 82.40% of the surveyed entities, indicate a substantial presence in the study, reflecting the evolving landscape of the services sector.