Business Statistics
Business Transition Matrix Percentage (%)
A business transition matrix is an analytical tool used to assess the evolution of businesses over time based on their size. The matrix shows, in percentage terms, how businesses within one category in an initial year are distributed across various categories in a subsequent year. This facilitates the identification of business dynamics or growth patterns, providing key insights for designing public policies and business strategies.
For the period 2014–2023, the results highlight significant progress in business mobility, particularly among medium-sized and large enterprises. For instance, 34.7% of medium-sized businesses in 2014 advanced to the large business category by 2023, reflecting sustained and significant growth. Moreover, large businesses demonstrate remarkable stability, with two out of three maintaining their classification. Additionally, 7.5% of small businesses managed to climb to higher categories (including those that transitioned to medium-sized and large), showcasing successful cases of growth within this segment. These results reflect that, despite challenges, many businesses find opportunities to grow and establish themselves in higher categories, contributing to the strengthening of the country’s business fabric.
Experience of Formal MSMEs
The chart displays the average number of years that formal MSMEs have been operating over a given period. This serves as an indicator of the stability, experience, and longevity of businesses in the formal market.
Between 2019 and 2023, formal MSMEs had an average of 8 years of operation, demonstrating fairly stable performance during this period. Small businesses, in particular, maintained an average of 9 years, consistent with the figure for 2022.
Survival Rate of Formal MSMEs
The chart illustrates the survival rate of MSMEs, calculated by comparing the number of MSMEs created in a base year with those still operating in subsequent years. This serves as a measure of MSMEs' resilience to economic challenges.
The survival rate for the analyzed MSMEs was 93% in their year of creation (2014). By the first year, 74% of these businesses remained in the market, and by the third year, the survival rate dropped to 55%. After nine years, the percentage of surviving MSMEs from the 2014 cohort was 35%.
*Operational businesses include those classified as active, under provisional closure, or in temporary suspension.
Entry Rate of Formal MSMEs
The chart displays the Gross Entry Rate (GER), which measures the percentage of businesses created in a given year relative to the total number of businesses operating in the same year.
The construction sector recorded the highest GER at 8.1%, followed by fisheries at 7.1% and agriculture at 7.0%. In contrast, the mining sector had the lowest GER at 3.4%.
