"It's Really Hard" I've Heard That Small Businesses Aren't Easy...

[Financial News] It has been found that production, start-ups, and employment in small businesses are all sluggish.
On the 30th, according to the July issue of 'KOSI Small Business Trends' published by the Jungso Venture Business Research Institute, production in small manufacturing in May decreased by 4.7% compared to the same month last year. This is a significant decrease compared to the 0.4% increase in April. This is due to a reduction in working days and continued difficulties in the domestic market. Production in small service industries increased by 0.6%, mainly in finance, insurance, health, and social welfare services.
The number of start-up companies in May this year was 92,285, a decrease of 7.5% compared to the same month last year, and the number of start-up companies in technology-based industries was 16,509, a decrease of 6.9%. The start-up rate was sluggish across all industries, with △construction (-15.7%) △manufacturing (-15.4%) △service (-6.5%) in that order.
The number of employees also decreased. In June this year, the number of employees in small businesses was 25,738,000, a decrease of 54,000 compared to the same month last year. The number of employees in companies with 5-299 employees increased by 131,000, but the number of employees in companies with 1-4 employees decreased by 185,000, resulting in an overall decrease. In particular, the number of employees in manufacturing and construction decreased by 73,000 and 119,000, respectively, continuing the trend of declining employment.
The Jungso Venture Business Research Institute predicted that if external uncertainties such as tariffs are added amid sluggish major economic indicators, the economy of small businesses will be further contracted.
A representative of the Jungso Venture Business Research Institute said, "Policy authorities should continue to monitor the effects of supplementary budget on the recovery of the domestic economy," and "We need to analyze the impact path of external uncertainties and seek countermeasures to prevent damage to small businesses."

kaya@fnnews.com Choi Hye-rim Reporter