A quarter of units launched during first year of ‘Entrepreneurial Year’ scheme closed, says RTI reply
The data was obtained in a survey conducted by the Industries Department.
The data was obtained in a survey conducted by the Industries Department.
The data was obtained in a survey conducted by the Industries Department.
Thiruvananthapuram: Around 25 per cent of the ventures started during the first year of the ‘Entrepreneurial Year’ scheme launched by the Kerala Industries Department in 2022-23 were closed down.
A reply to a query raised under the Right to Information (RTI) Act revealed that 1,39,839 units were started in 2022-23, of which 34,874 have ceased to operate. The data was obtained in a survey conducted by the Industries Department.
The causes for the closure of the enterprises include financial problems, shortage of basic infrastructural facilities, marketing issues, labour problems and lack of various clearances from the government.
Some units were shut down following the demise or physical disabilities of the owners. Incidentally, as per national statistics, 25-30 per cent of small-scale enterprises are closed within one year of their launch, and this figure matches the data from Kerala.
However, during the second year of the ‘Entrepreneurial Year’ in Kerala, only 9 per cent of the new enterprises were shut. As per official data, while 1,03,596 units were opened in 2023-24, 9,324 among them were closed soon.
A comparison of the 2022-23 and 2023-24 data reveals that the number of non-functional units had decreased. In the third year of the ‘Entrepreneurial Year’ scheme that started in April 2024, Kerala witnessed the launch of 96,105 new enterprises till December.
The Industries Department claims that a total of 3,39,540 ventures were started under the ‘Entrepreneurial Year’ scheme, attracting investments worth Rs 21,798.82 crore and creating 7,20,106 jobs.