KOCHI: Group enterprises tend to survive longer compared to individuals-promoted firms that wind up in significant numbers, reveals a survey of micro- enterprises carried out in Ernakulam district under the Decentralisation Support Programme through the Kudumbasree poverty eradication mission.
The State-wide survey covered the entire spectrum of micro-enterprises started since the Kudumbasree mission was launched about seven years ago. It also included enterprises that were started outside the Kudumbasree mission.
The survey, carried out by Kudumbasree workers, stressed the need for continued support to enterprises, proper training for entrepreneurs and stronger marketing facilities.
The results of the survey are being used to help the local bodies to acquire better understanding of the micro-enterprises and to encourage the models that are more successful.
Micro-enterprises involve capital investments of between Rs. 10,000 and Rs. 50,000 in the case of individuals and up to Rs. 2 lakh in the case of groups comprising 5 to 10 persons.
In all, more than 50,000 micro-enterprises were surveyed across all the sectors, in which Ernakulam district accounted for 4,605 units. The survey showed that more individual enterprises were started compared to the group enterprises. For instance, in Ernakulam district, there were 2,968 individual enterprises while there were only 1,637 group micro-enterprises. However, in terms of survival, only 52 per cent of the individual units succeeded while 78 per cent of the group enterprises survived. The survival rates varied in different districts. For example, in Thrissur district, 80 per cent of group enterprises survived while only 52 per cent of individual enterprises survived.
The reasons for starting the enterprises varied. While some launched enterprises in their traditional areas of activities, previous entrepreneurial experience prompted others to take up new ventures.