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.
Between 2015 and 2024, notable progress was observed in business mobility, particularly among medium-sized and large enterprises. In 2015, 36.1% of medium-sized firms advanced to the large-enterprise category by 2024, reflecting sustained and robust growth. Large companies also demonstrated strong stability, with two out of three maintaining their classification. Meanwhile, 7.5% of small enterprises successfully moved up to higher categories (medium or large), showcasing successful growth stories within this segment. These results suggest that, despite existing challenges, many firms are seizing opportunities to grow and consolidate in higher categories, contributing to the strengthening of the country’s business landscape.
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 2024, formal MSME operated for an average of 8 years, showing fairly stable performance over this period. Small enterprises, in particular, recorded an average of 8 years, lower than in 2023 (9 years).
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 of the MSME analyzed was 96.4% in their year of creation (2015). After the first year, 84.7% of firms remained in the market, and by the third year the survival rate had declined to 65.2%. After ten years, 34.2% of the MSMEs established in 2015 were still in operation.
*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.
It is observed that the agriculture sector recorded the highest Gross Entry Rate (GER) at 8.5%, followed by construction (6.7%) and trade (6.2%), while the fishing sector registered the lowest rate at 5.7%.
