CHAPTER - THREE AGRICULTURAL ENTERPRISES. the Fourth Economic Census though the main thrust was on non-agricultural economic activities.

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1 CHAPTER - THREE AGRICULTURAL ENTERPRISES Entrepreneurial activities in the primary sector of the economy were also covered under the Fourth Economic Census though the main thrust was on non-agricultural economic activities. In fact, this has been the pattern followed since the second economic census, as far as subject of coverage is concerned. The coverage however, is limited to all those agricultural activities minus crop production and plantation. Accordingly, `Agricultural Enterprises' referred to in this chapter may be taken to mean those engaged in Live Stock Production, Agricultural services, hunting trapping, game propagation, forestry logging and fishing. The importance and proportion of this sector is on the decline in Delhi due to rapid urbanisation. This is evident from the fact that agricultural enterprises account for only one percent of total enterprises and no. of persons employed is about half percent of the total employment in Delhi. Among the agricultural activities covered under the Fourth Economic Census the sub sector 'raising of live stock' emerged as the main activity. The principal features of agricultural enterprises were explained in terms of no. of enterprises, employment, type of ownership and other principal characteristics to give an idea about this activity both in rural and urban areas of Delhi. NUMBER OF AGRICULTURAL ENTERPRISES The total number of agricultural enterprises as per the Fourth Economic Census comes to Out of them 3011 (42.21%) were located in rural areas and rest of the 4122 (57.79%) in urban areas. Table 3.1 gives the details of agricultural enterprises by type, location and 42

2 employment thereof. Further distribution of these enterprises in terms of own account and establishments revealed that 3129 (43.87%) belong to former and 4004 (56.13%) to later category. Table 3.1: Number Of Agricultural Enterprises and Employment Therein By Location and Type Of Enterprises S.N O TYPE OF ENTERPRISES NUMBER OF ENTERPRISES R U R A L U R B A N T O T A L A. Own Account Enterprises (i) Number (43.87) (ii) Employment (27.14) (iii) Average Employment B. Establishment (i) Number (56.13) (ii) Employment (72.86) (iii) Hired Persons (iv) Average Employment C. All Enterprises (i) Number (42.21) (57.79) (ii) Employment (45.54) (54.46) (iii) Average Employment Note: Figures in ( ) indicate percentage to total In rural out of the total agricultural enterprises 1126 (37.4%) were own-account type and 1885 (62.6%) establishments. In urban, on the other hand, 2003 (48.6%) were in the category of own account enterprises and 2119 (51.4%) were establishments. Graph 1 exhibits these details location-wise. 43

3 GRAPH - I DISTRIBUTION OF AGRICULTURAL ENTERPRISES BY TYPE NUMBER RURAL URBAN DELHI Own-Account Enterprises Establishments Establishments in agricultural sector were further classifieds into NDE's and DE's. Out of 4004 establishments 3263 were NDE's and 741 were DE's. Distribution of agricultural establishments location-wise is presented in table3.2. TABLE 3.2 DISTRIBUTION OF AGRICULTURAL ESTABLISHMENTS BY TYPE AND LOCATION Location Non-Directory Establishment R U R A L 1532 (81.27) U R B A N 1731 (81.69) TOTAL 3263 (81.49) Note: Figures in ( ) indicate percentage to total Type of Enterprises Directory Establishment 353 (18.73) 388 (18.31) 741 (18.51) Total The dominance of Non-directory establishments was felt in both rural and urban areas, as they account for 81.27% and 81.69% of the agricultural establishments in Delhi respectively. 44

4 EMPLOYMENT IN AGRICULTURAL ENTERPRISES The total number of persons usually working in the agricultural enterprises was (refer Table 3.1). Out of them, (45.54%) were in rural and (54.46%) in urban. The average number of persons employed in each of the agricultural enterprises comes to 3.13 persons. Sex-wise distribution of employment (refer Table 3.3) indicates that (80.54%) male and only 4347 (19.46%) female found to be employed in agricultural enterprises. Proportion of female employment in own account agricultural enterprises was 27.24% whereas, it was about % in establishments. Table : 3.3 Distribution Of No. Of Persons Usually Working In Agricultural Enterprises By Sex, Enterprise Type and Location S.N TYPE OF ENTERPRISE R U R A L U R B A N T O T A L O. A. Own Account Enterprises (i) (ii) Male Female Total B. Establishment (i) (ii) Male Female Total C. All Enterprises (i) (ii) Male Female Total Note : Figures in ( ) indicate percentage to total 1659 (66.46) 838 (33.56) (83.14) 1294 (16.86) (79.04) 2132 (20.96) (77.20) 813 (22.80) (83.70) 1402 (16.30) (81.79) 2215 (18.21) (72.76) (27.24) (83.43) 2696 (16.57) (80.54) 4347 (19.46)

5 Sex-wise distribution of employment in agricultural enterprises is presented in graph II. GRAPH II SEX WISE DISTRIBUTION OF EMPLOYMENT IN AGRICULTURAL ENTERPRISES DELHI URBAN RURAL NO.OF PERSONS MALE FEMALE Break-up of employment by enterprise type revealed that 6062 (27.14%) persons were gainfully employed in own account enterprises and (72.86%) persons in establishments. There were 7028 hired persons employed in the agricultural establishments of Delhi. Out of them 3217 were working in rural based agricultural establishments and 3811 in the agricultural establishments of urban Delhi.(refer table 3.1) Hired employment constitutes about 31% of the total employment in agricultural establishments. Average no. of persons employed per establishment comes to 4.06 persons. Similar figure for own account enterprises was about 2 persons per enterprise. 46

6 graph III. Employment in agricultural enterprises by type of enterprises and location is presented in GRAPH III DISTRIBUTION OF EMPLOYMENT BY TYPE OF ENTERPRISE IN AGRICULTURAL ENTERPRISES OF DELHI NUMBER RURAL URBAN DELHI Own Account Enterprises Establishments Total AGRICULTURAL OWN-ACCOUNT ENTERPRISES SIZE OF EMPLOYMENT Table 3.4 gives the distribution of own account agricultural enterprises in terms of employment size class and corresponding employment. It helps to ascertain the intensity of employment in agricultural enterprises. Out of the total 3129 agricultural own-account enterprises, 3048 (97.41%) were found to be employing persons in the range of 1-5, 74 (2.37%) enterprises in the range of 6-9 persons and only 7(0.22%) enterprises were found to be employing 10 or more persons. The share of rural and urban enterprises employing persons in the range 1-5 was 97.60% and 97.30% respectively. 47

7 Table 3.4 : Distribution Of Own-Account Agricultural Enterprises And Persons Usually Working Therein By Size-Class Of Employment Location RURAL ITEM SIZE CLASS OF EMPLOYMENT & ABOVE ALL CLASSES I) ENTERPRISES Percentage to total enterprises II) PERSONS USUALLY WORKING Percentage to total workers URBAN I) ENTERPRISES Percentage to total enterprises II) PERSONS USUALLY WORKING Percentage to total workers COMBINED I) ENTERPRISES Percentage to total enterprises II) PERSONS USUALLY WORKING Percentage to total workers Coming to the corresponding employment in each size class, it was found that 90.33% of the employees of own-account agricultural enterprises were absorbed by enterprises employing persons in the range 1-5. This was followed by enterprises employing 6-9 persons with 7.95% share, and the remaining 1.72% were employed by enterprises in the size class of 10 or more persons. 48

8 AGRICULTURAL ESTABLISHMENTS SIZE OF EMPLOYMENT Similar position with respect to size class of employment in agricultural establishments is presented in table 3.5. Table No. : 3.5: Distribution of Agricultural establishments by Size Class of Employment Employment Size Class Sl.No. Item 10 & Above All Classes 1 RURAL (i) Number Percentage to Total Enterprises (ii) Persons Usually Working Percentage to Total Workers URBAN (i) Number Percentage to Total Enterprises (ii) Persons Usually Working Percentage to Total Workers COMBINED (i) Number Percentage to Total Enterprises (ii) Persons Usually Working Percentage to Total Workers In case of establishments of rural areas, it was found that 1532 (81.27%) enterprises were found to be employing persons in the range of 1-5 and employment in these establishments was 5237 (68.25%)persons. Likewise, 329 (17.46%) enterprises were in the employment size class of 6-9 persons were accommodating 2073 (27.01%)persons. While the remaining 24 (1.27%) agricultural establishments who fall in size class of 10 or more persons were found to be employing only 364 (4.74%) persons. Agricultural establishments of urban areas have exhibited more or less same features as that of rural based agricultural establishments in this respect. 49

9 SELECTED CHARACTERISTICS OF AGRICULTURAL ENTERPRISES Selected features of the 7133 agricultural enterprises was also studied from the angle of their nature of operation, premises type, type of ownership etc. to throw some light on their functioning. These details are presented in Table 3.6 and 3.7. Table: 3.6: Selected Characteristics of Agricultural enterprises Item RURAL URBAN COMBINED OAE Estt. Total OAE Estt. Total OAE Estt. Total All Enterprises i) Under Pvt. NPI ownership ii) Under Pvt. Others ownership iii) Non-perennial iv) Without premises v) Without power/fuel Under Social Group of Ownership (i) ST (ii) SC (iii) OBC (iv) Others TYPE OF PREMISES: Classification of enterprises in terms of fixed premises and otherwise brought to light that majority of them, namely, 6714 (94.13%) were operating from a fixed premises and only 419 (5.87%) of them were moving type. Out of the 419 agricultural enterprises operating without fixed premises 297(70.88%) were in rural and 122(29.12%) in urban. 50

10 NATURE OF OPERATION: Enterprises according to nature of operation fall under two main categories viz. perennial and seasonal. In case of agricultural enterprises of Delhi, it was found that 139(1.95%) out of the total of 7133 enterprises were seasonal in nature. Out of them 85 enterprises accounting to about 61% were own-account enterprises and 54 were establishments. Rural areas accounted for only 29 seasonal enterprises and the remaining 110 were urban based enterprises. SOCIAL GROUP OF OWNER Social group of owner of enterprises in terms of SC, ST, OBC and others is relevant for privately managed enterprises only. Distribution of enterprises for social group OBC was introduced for the first time under Fourth Economic Census. Social group of owner of private agricultural enterprises indicate that 580 (8.15%) were held by SC, 3343 (46.96%) by OBC and remaining 3196 (44.89%) were headed by persons belonging to other social groups. People belonging to social group 'ST' are yet to open their account in the agricultural enterprises. 51

11 TYPE OF POWER / FUEL USED: Analysis of type of power used by agricultural enterprises of Delhi revealed that 6645 (93.16%) enterprises out of 7133 enterprises were not using any kind of power for their main operations. Out of them 2797 were own account enterprises and 3848 were establishments. There were 2899 and 3746 enterprises not using any type of power for their main operation in rural and urban areas respectively. Table : 3.7: Distribution of Agricultural Enterprises by Type of Power/Fuel Used. S.No. Type of Power/Fuel Used Rural Urban Combined 1 Without Power Electricity Coal/Soft Coke Petrol/Diesel LPG/Natural Gas Fire Wood Kerosene Animal Power Non-conventional Energy Others Total Table 3.7 gives further break-up of type(s) of power/fuel used in respect of agricultural enterprises using power for their main operation. Electricity was found to be the most commonly used type of power among the power using agricultural enterprises as 349 (71.52%) out of 488 power using enterprises fall in this category. This was followed by animal power used by 41(8.40%) enterprises, Eco-friendly Non-conventional energy sources by 31(6.35%) enterprises and Petrol/Diesel was used by only 16(3.28%) enterprises. The remaining 51(10.45%) enterprises were found to be using other kinds of power/fuel for their main operation. 52

12 TYPE OF OWNERSHIP Type of ownership, refers to the form of management of the enterprises such as Private, Co-operative, Trust or for that matter by govt. All own-account enterprises, without saying, were private in nature as they were managed by households. Establishments in the agricultural sector were further divided on the basis of type of ownership as revealed by Table 3.8. Table: 3.8: Number Of Agricultural Establishments And Employment Therein By Type Of Ownership And With Rural And Urban Location Nature of ownership Number of Total Employment per Establishments Employment Establishment RURAL All Establishments (i) Under Pvt. NPI (ii) Under Pvt. others (iii) Co-operative 0 0 X (iv) Government 0 0 X URBAN All Establishments (i) Under Pvt. NPI (ii) Under Pvt. others (iii) Co-operative 0 0 X (iv) Government COMBINED All Establishments (i) Under Pvt. NPI (ii) Under Pvt. others (iii) Co-operative 0 0 X (iv) Government It was found that ownership of 3997 out of 4004 establishments, constituting about 99.83% was private in nature and rest few come under other type. The trend was similar in rural and urban areas in this respect. 53

13 COMPARISON OF RESULTS: ECONOMIC CENSUS ,1990 & 1998 Comparative position of data pertaining to agricultural enterprises under successive economic census, starting from second Economic Census is presented in Table 3.9. Table:3.9: Comparative Position Of Agricultural Enterprises Under Different Economic Census S.No A. No. of Enterprises By Type % Variation 1998 % Variation (i) Own-Account Enterprises (-)3.43 (ii) Establishments (iii) Total (-)0.29 B. No. of Persons usually working (i) Total (ii) Hired C. No. of Enterprises by Location (i) Rural (-) (ii) Urban (-)3.06 (iii) Total (R+U) (-)0.29 D. Characteristics (i) Seasonal (ii) Without Premises (iii) Without Power (-)7.94 (iv) Social group of SC (-)32.64 Owner ST The number of agricultural enterprises though registered a marginal annual growth rate of 2.08% during the decade falling between 1990 and 1980, this upward trend was not maintained between 1990 and In fact, number of enterprises decreased from 7346 in the year 1990 to 7133 in the year It is also worthwhile to observe that number of agricultural enterprises were more than doubled (from 1404 to 3011) in rural areas in 1998 in comparison to 1990 and 54

14 at the same time in urban their number declined sharply by sizeable number i.e This can perhaps be due to the urbanisation of some of the villages which were covered as rural areas in the earlier economic census. However, employment in this sector increased slightly from to persons between 1990 and Graph no. IV provides the comparative position in respect of enterprises and employment under economic census starting from second economic census. GRAPH IV COMPARISON OF NUMBER OF AGRICULTURAL ENTERPRISES & EMPLOYMENT UNDER DIFFERENT ECONOMIC CENSUS EMPLOYMENT/ENTERPRISES ECONOMIC CENSUS YEARS ENTERPRISES EMPLOYMENT It can be concluded that though the number of agricultural enterprises have decreased, employment in agricultural enterprises continue to move in the positive direction in Delhi. *** 55

15 CHAPTER FOUR NON AGRICULTURAL ENTERPRISES The main focus of Economic Census has been the non-agricultural economic activities though a part of the agricultural activities are covered under it. The rationale behind giving main thrust to this set of activities is that it will help to build up a firm base for launching detailed sample surveys on each of the major non-agricultural economic activity. This in turn is expected to generate valuable database on the contribution of un-organised economic activity to the economy. Its importance gets multiplied in respect of State of NCT of Delhi as this set of activities occupy pivotal position as 99% of self employment units come under this category. In fact Delhi s economy is sustained to a great extent by service sector which is an important component of non-agricultural sector. Fourth economic census covered all types of non-agricultural economic activities whether they are registered or un-registered, private or otherwise, seasonal or perennial, fixed or moving type, employing hired labour or managing with household members, all and sundry thereby making this a colossal operation. Since the very essence of economic census is the measurement of non-agricultural activities in terms of its physical properties, a detailed analysis of each field of activity is made in this section. Before that, a brief review of the size, scope and important features of the non-agricultural economic activities is made. 56

16 NUMBER OF NON-AGRICULTURAL ENTERPRISES Fourth economic census has brought to light that, but for the meagre one percent of entrepreneurial activities, all other self employment units are non-agricultural in nature. This is ably supported by the fact that out of enterprises are in this sector as presented in Table 4.1. The total employment generated by these entrepreneurial units stated in terms of number of persons usually working was (99.36%) out of the overall employment of recorded under the fourth economic census. Table 4.1 : Non-agricultural enterprises and employment thereof. S.No. A B C Type of Enterprises OWN ACCOUNT ENTERPRISES No. of Enterprises/Employment Rural Urban Combined (i) Number (ii) Employment (iii) Females (iv) Average Employment ESTABLISHMENTS (i) Number (a) Non-Directory Enterprises (b) Directory Enterprises (ii) Employment (iii) Females (iv) Hired Persons (v) Average Employment ALL ENTERPRISES (i) Number (ii) Employment (iii) Females (iv) Average Employment Note: Figures in ( ) indicates percentage to total. 57

17 Break up of non-agricultural enterprises on the basis of their location viz. Rural & Urban revealed that only26516 (3.91%) were in rural and (96.01%) in Urban areas of Delhi. Non-agricultural enterprises can be further divided on the basis of their type into Own-Account Enterprises (OAEs) and Establishments. There were (48.04%) OAEs and (51.96%) establishments. Establishments are of two types viz. Non-Directory (NDEs) and Directory Enterprises (DEs). NDEs account for and DEs number of units. Graph No. 1 provides the distribution of non-agricultural enterprises in terms of type and location Graph 1 Distribution of Non-agricultural Enterprises by type and location Number of Enterprises Rural Urban Delhi Own-account enterprises Establishments EMPLOYMENT IN NON-AGRICULTURAL ENTERPRISES The indomitable position occupied by the non-agricultural sector in providing gainful employment to the persons usually working in this sector is evident from the fact that they account for more than 99% of total employment in the enterprises of Delhi. It is also essential to note that dominance of this sector is felt evenly both in Rural as well as Urban areas. 58

18 In rural out of the total of persons employed in all types of enterprises (88.14%) were employed in non-agricultural enterprises. In urban areas 34,02,941 (99.64%) persons were found to be working in this sector, out of the total urban areas employment of in all types of enterprises. Employment in these enterprises in terms of type of enterprises namely own-account (OAEs) and Establishments revealed that persons were in former type and persons were in the latter type of enterprises. Employment in establishments can be divided into two categories i.e. hired and others. Hired workers account for about lakhs (73.90%) of the total employment in non-agricultural enterprises while others constitute about 9.08 lakh (26.10%) persons. Status of workers in nonagricultural enterprises is depicted in graph II. Graph II Distribution of Employment in Non-Agricultural Enterprises Others 26.10% Hired 73.90% 59

19 Sex-wise break-up of employment in non-agricultural enterprises revealed that there were about 8% female workers ( in number), whereas male workers constituted to about 92% in the total. Further classification revealed that 6346 (2.28%) and (97.72%) females were employed in enterprises of rural and urban areas respectively. Among the women employed in non-agricultural enterprises, it was further found out that (92.10%) were in establishments and (7.90%) in own account enterprises. This position is presented in graph III. Graph III Sex-wise Distribution of Employment in Non-Agricultural Enterprises Number of Persons Own Account Enterprises Establishments Male Female Average number of persons usually working in non-agricultural enterprise comes to about 5.13 persons. It was only 1.45 persons in own account enterprises while in establishments it was about 8.53 persons per enterprise. Average employment in rural based non-agricultural enterprises was 2.85 persons and that of urban based ones was 5.22 persons. 60

20 Table No. 4.2 gives details of number of enterprises, employment and average employment in non-agricultural enterprises in terms of major non-agricultural economic activity groups in Delhi. Table 4.2 : Distribution of Non-agricultural enterprises by major economic activity groups and employment thereof. S.No. Major Activities Group Enterprises Number Employment Average Employment 1 Mining & Quarrying Manufacturing Electricity, Gas & Water Construction Wholesale Trade Retail Trade Restaurants & Hotels Transport Storage & Warehousing Communications Financial, Insurance, Real estate & Business services Community, Social & Personal Services & Others Non-Agricultural Activities Barring Electricity, gas and water group which is dominated by government enterprise, manufacturing activity group with the largest intake of employment stands as the group with highest average employment of workers per enterprise. Communication activity was having the next best average employment record of 8.79 workers per enterprise. The average employment of Finance activity group was 7.12 workers and rest of the groups were having an average employment ranging between 2 and 5. 61

21 REVIEW OF PROGRESS OF NON-AGRICULTURAL The non-agricultural economic activities are spread over secondary and tertiary sector. The secondary sector which comprises of major economic activity groups like Mining & Quarrying, Manufacturing, Electricity, Gas & Water and Construction accounts for 20.43% (138676) enterprises. Its share in employment was (45.36%) persons. This sector on the whole registered an annual growth of 5.08% in enterprises and 16.62% in employment during as against the corresponding rate of growth of 1.25% and 3.45% between The manufacturing activity which also includes repair services was the leading activity with 1.29 lakhs (19.06%) enterprises employing about 14.4 lakhs (41.40%) persons in this sector. Construction and Electricity, Gas & water activities which occupied a very distant subsequent positions with 8277 and 1036 number of enterprises maintained a positive growth rate both in number and employment. However, Mining & Quarrying activity had become a non-existing activity, keeping in tune with Govt. policy. The tertiary sector, the most important of the three sectors as far as the economy of Delhi is concerned, was found to be flourishing with all types of service activities under its belt. This sector accounted for (79.57%) enterprises and was providing employment to (54.64%) persons. This sector on the whole achieved a growth rate of 6.85% in number of units during In case of employment, rate of growth was 4.64% between when compared to that of 4.59% between All the major economic activity groups achieved positive growth in their number and employment with the exception of storage and warehousing. The major economic activity group retail trade with 2.31 lakhs enterprises and 5.35 lakhs employment topped the non-agricultural sector in the number of enterprises, and in respect of employment it had taken an overall third 62

22 position in the non-agricultural sector. The annual growth rate of this activity in the number of enterprises was 4.5% and that of employment was 7.22%. The major economic activity group social, community and personal services with 1.47 lakhs enterprises and about 6.22 lakh employment against its credit had taken an overall second position in number of enterprises and employment as well in the non-agricultural sector. The rate of growth in enterprises and employment were 10.3% and 2.43% respectively. The status of other major economic activity groups may be see from the table 4.3. Table 4.3: Non-Agricultural Economic Activities Under Economic Census Number of Enterprises Major Economic Activity Group Annual Growth Rate Employment Annual Growth Rate SECONDARY SECTOR Mining & Quarrying Manufacturing Electricity, Gas & Water Construction SUB-TOTAL TERTIARY SECTOR Wholesale Trade Retail Trade Restaurants & Hotels Transport Storage & Warehousing Communications Financial, Insurance, Real estate & Business services Community, Social & Personal Services & Others SUB-TOTAL Non-Agricultural Activities During , number of enterprises engaged in wholesale trade had moved from to and their employment had increased from 1.05 lakhs to 1.58 lakhs persons during the same period. 63

23 Graph IV Distribution of Enterprises under different Economic Census Number of Enterprises Manufacturing Retail/Wholesale Community,Social & Transport Trades Personal Services Communications The number of enterprises in Hotels and Restaurants group had progressed from to 30247, Transport enterprises had increased by four times as their number increased from to 47360, Communications activity marched from a modest 585 to enterprises during the intervening period of third and fourth economic census. The number of persons usually working in these groups of activities had made rapid strides as presented in Table 4.3. To illustrate employment in Hotels & Restaurants group had increased from to persons, employment in Transport activity had more than doubled i.e. (from to ), while the employment in Communications sector increased from to The number of enterprises in the group of Finance, Insurance, Real Estate & Business Services had increased from to 29153, and the number of persons usually working in them advanced from 1.94 lakhs to 2.07 lakhs. 64

24 Graph V Distribution of Employment Under Different Economic Census Number of Persons Manufacturing Retail/Wholesale Trades Community, Social & Personal Services Transport Communications However, the number of units in the major economic activity group storage & warehousing diminished drastically i.e. from to 6526, but the rate of fall in the employment was not that steep (32855 to 27056). The non-agricultural sector on the whole achieved an annual growth rate of 6.46% in enterprises and 8.57% in employment during as against the growth-rate of 5.76% and 4.19% during respectively. Graph no. IV and V show the comparative position of selected major economic activity groups which have made significant progress in respect of number of enterprises and employment recorded under the last three economic census. OWN-ACCOUNT NON-AGRICULTURAL ENTERPRISES 65

25 SELECTED CHARACTERISTICS Table 4.4 gives the distribution of own-account non-agricultural enterprises and the employment thereof location-wise. The data presented in this table will be useful for further studies on informal sector as own account enterprises constitute major chunk of this sector. Table 4.4 Number of Non-agricultural Own-Account Enterprises and Employment therein by Major Economic Activity Group. Rural Urban Combined Sl.No. Major Economic Activity Groups Own- Account Enterprises No. of Persons Usually Working Own- Account Enterprises No. of Persons Usually Working 1 Mining & Quarrying Manufacturing Electricity, Gas & Water Construction Wholesale Trade Retail Trade Restaurants & Hotels Transport Storage & Warehousing Communications Financial, Insurance, Real estate & Business services Community, Social, 12 Personal Services & Others. Non-Agricultural Activities Note: Figures in ( ) indicate percentage to total. Own- Account Enterprises 0 (0.00) ( 10.63) 0 (0.00) 6000 (1.84) 9791 (3.00) (41.53) (3.46) (10.73) 1880 (0.58) 7964 (2.44) (4.06) (21.73) No. of Persons Usually Working 0 (0.00) (15.29) 0 (0.00) 7058 (1.50) (3.83) (39.58) (3.28) (8.80) 2502 (0.53) (2.20) (4.10) (20.89) There were own account enterprises which account for 48.04% of total nonagricultural economic activities in the state of Delhi. The strength of own account enterprises increased from in 1990 to in 1998 thereby registering an annual growth rate of 66

26 5.2%. Out of them (4.84%) were in rural and (95.16%) in urban areas. Analysis of data relating to own account enterprises with respect to their number and employment revealed that retail trade activity with 1.35 lakh (41.53%) enterprises leads the table followed by community, social and personal services and transport activity with 70861(21.73%) and 34991(10.73%) enterprises respectively, these three major groups coupled with the share of manufacturing activity (10.63%) forms nearly 85% of the total own account enterprises in nonagricultural activities. The reason for their major share is that activities in these fields are freelance in nature. They are governed by minimal governmental/statutory restrictions for setting up selfemployment ventures in these fields of activities. In respect of number of persons usually working in different own account non-agricultural enterprise groups, it was found that retail trade, community, social and personal services and manufacturing activity contributed 39.58%, 20.89% and 15.29% of the employment respectively. The share of transport activity was 8.80%. The principal features of own account enterprises in this sector are presented in table 4.5. Table 4.5: Selected Characteristics of Own-account Enterprises by Major Economic Activity Groups. Number of Own Account Enterprises Sl.No. Major Economic Activity Groups Nonperennial Premises Power/Fuel ST SC OBC Without Without Social Group of Owner Total 1 Mining & Quarrying Manufacturing Electricity, Gas & Water Construction Wholesale Trade Retail Trade Restaurants & Hotels Transport Storage & Warehousing Communications Financial, Insurance, Real estate & Business services Community, Social, Personal Services & Others Non-Agricultural Activities To start with, all these enterprises are private in nature. Of the total enterprises 1.74% were non-perennial, 20.18% operated without any fixed premises and 70.75% were not using 67

27 power/fuel. Social group of ownership revealed that 0.45% were in the hands of S.T's, 10.90% S.C's, 11.94% O.B.C and rest of the 76.71% enterprises were owned by other social groups. SIZE OF EMPLOYMENT Table 4.6 provides data on size-class of employment of enterprises of own account enterprises. Table 4.6: Distribution of Own-Account Non-Agricultural Enterprises and Persons Usually Working Therein by Size-Class of Employment. Employment Size Class Sl.No. Item & Above All Classes 1 RURAL (i) Number Percentage to Total Enterprises (ii) Persons Usually Working Percentage to Total Workers URBAN (i) Number Percentage to Total Enterprises (ii) Persons Usually Working Percentage to Total Workers COMBINED (i) Number Percentage to Total Enterprises (ii) Persons Usually Working Percentage to Total Workers Own account enterprises to the tune of 99.14% were in the 1-5 employment size-class for obvious reasons. This class alone accounts for 93.12% of total number of persons usually working in own-account non-agricultural enterprises on the whole. Enterprises in other size-class of employment were less than 1% and they account for about 7% of the total employment of such type of enterprises. 68

28 NON-AGRICULTURAL ESTABLISHMENTS SELECTED CHARACTERISTICS The results of fourth economic census have revealed that 51.96% of non-agricultural enterprises amounting to were establishments. Table 4.7 Number of Non-agricultural Establishments and Employment therein by Major Economic Activity Group. Sl.No. Major Economic Activity Groups Rural Urban Combined No. of Persons Usually Working Total Hired No. of Persons Usually Working Total Hired 1 Mining & Quarrying Establishments Establishments Establishments 0 (0.00) No. of Persons Usually Working Total 0 (0.00) Hired 0 (0.00) 2 Manufacturing (26.85) (45.50) (47.44) 3 Electricity, Gas & Water (0.29) (3.84) (4.49) 4 Construction (0.65) (0.51) (0.48) 5 Wholesale Trade (7.70) (4.66) (4.09) 6 Retail Trade (27.15) (11.61) (9.28) 7 Restaurants & Hotels (5.37) (3.32) (2.98) 8 Transport (3.51) (3.16) (3.10) 9 Storage & Warehousing (1.32) (0.82) (0.78) 10 Communications (0.89) (2.90) (3.31) 11 Financial, Insurance, Real estate & Business services (4.52) (6.26) (6.71) 12 Community, Social, Personal Services & Others (21.75) (17.42) (17.34) Non-Agricultural Activities Note: Figures in ( ) indicate percentage to total. The strength of establishments increased by number during and thereby managed a growth rate of 7.8%. Out of the total non-agricultural establishments, were in 69

29 rural, and in urban. Establishments, activity-wise revealed that largest number of them, namely, 95735(27.15%) were in retail trade. Manufacturing activity was at the second place with (26.85%) establishments, and community, social and personal services group with (21.75%) establishments placed at third position. Wholesale trade accounted for (7.70%), restaurants and hotels for 18952(5.37%) financial, insurance, and business activities 15931(4.52%), transport 12369(3.51%) in the total number of non-agricultural establishments. In respect of employment, non-agricultural establishments account for 86.43% of total employment in non-agricultural enterprises. Employment in these type of enterprises increased from lakhs to lakhs and thereby registered a growth rate of 8.97% during the Table 4.8 gives the principal characteristics of non-agricultural establishments for Delhi as a whole. TYPE OF OWNERSHIP Out of the total of non-agricultural enterprises, (98.60%) were under private, 8217 (1.21%) were Government enterprises, 849 (0.13%) Private non-profit institutions and only 422 (0.06%) are under co-operatives. The type of ownership of non-agricultural enterprises in both rural and urban areas followed more or less same pattern. 70

30 SOCIAL GROUP OF OWNER Social group of owner of private, Non-agricultural establishments was studied in terms of persons belonging to SC, ST, OBC and others by sex-wise. Table 4.8: Selected Characteristics of Non-Agricultural Establishments by major Economic Activity Groups in Delhi Sl.No. Major Economic Activity Groups Total Private NPI Private Others Number of Establishments Without Premises Without Social Group of Owner Power/- Fuel SC ST OBC 1 Mining & Quarrying Manufacturing Electricity, Gas & Water Construction Wholesale Trade Retail Trade Restaurants & Hotels Transport Storage & Warehousing Cooperatives Government Nonperennial 10 Communications Financial, 11 Insurance, Real estate & Business services 12 Community, Social, Personal Services & others. Non- Agricultural Activities On the whole 0.34% of private non-agricultural establishments were owned by ST, 4.20% by SC, 7.48% by OBC and 87.98% by others. The incidence of majority of establishments owned by SC/ST/OBC figured in the major economic activity groups manufacturing, retail trade and community, social and personal services. 71

31 TYPE OF PREMISES Out of the total non-agricultural establishments (3.06%) were operating without any fixed premises and rest of the (96.94%) were operating with fixed premises. This classification is also available major activity group-wise. Out of the total non-agricultural establishments without premises, community, social and personal services account for 4661 (43.22%) retail trade accounts for 2614 (24.24%) and Manufacturing accounts for 1141 (10.58%) enterprises. These three activity groups together accounted for about 78% of the total nonagricultural establishments operating without premises while the rest of the activity groups accounted for remaining 22%. NATURE OF OPERATION Nature of operation in terms of perennial and non perennial brought to light the fact that the enterprises operating in selected seasons constitutes a very low percentage. The combined position in respect of non-agricultural establishments was that 4303 (1.22%) were seasonal and the remaining 98.78% were perennial in nature. 72

32 TYPE OF POWER USED IN NON-AGRICULTURAL ENTERPRISES Analysis of type of power used by non-agricultural enterprises of Delhi revealed that (61.20%) enterprises out of enterprises were not using any kind of power for their main operations. There were and enterprises not using any type of power for their main operation in rural and urban areas respectively. Table 4.9: Distribution of Non-Agricultural Enterprises by Type of Power/Fuel Used S.No. Type of Power/Fuel Used Rural Urban Combined 1 Without Power Electricity Coal/Soft Coke Petrol/Diesel LPG/Natural Gas Fire Wood Kerosene Animal Power Non-conventional Energy Others Total Table 4.9 gives further break-up of type(s) of power/fuel used in respect of no-agricultural enterprises using power for their main operation. Electricity was found to be the most commonly used type of power among the power using agricultural enterprises as (73.21%) out of power using enterprises fall in this category. This was followed by LPG/Natural Gas used by 23316(8.85%) enterprises and Petrol/Diesel was used by 19434(7.38%) enterprises. These three principal sources of power/fuel accounts for 89.44% of the power using non-agricultural enterprises. The remaining 27818(10.56%) enterprises were found to be using other kinds of power/fuel for their main operation. It was found that Eco-friendly Non-conventional energy sources were used by only 210(0.08%) enterprises 73

33 SIZE OF EMPLOYMENT Table 4.10 provides the distribution of non-agricultural establishments in terms of sizeclass of employment. Table 4.10 Distribution of Non-Agricultural Establishments and Persons Usually Working Therein by Size Class of Employment. Employment Size-Class Sl.No. Item & Above All Classes 1 RURAL (i) Number Percentage to Total Enterprises (ii) Persons Usually Working Percentage to Total Workers URBAN (i) Number Percentage to Total Enterprises (ii) Persons Usually Working Percentage to Total Workers COMBINED (i) Number Percentage to Total Enterprises (ii) Persons Usually Working Percentage to Total Workers Out of the total non-agricultural establishments, 69.39% were found to be employing persons in the range of 1-5, 16.38% in the range of 6-9 persons and the remaining 14.23% in the range of 10 or more persons. It is worthwhile to note that employment size-class 10 and above accounts for 62.29% of the total employment in non-agricultural establishments. On the basis of above analysis, it can be concluded that non-agricultural sector will continue to dominate entrepreneurial activities of state of Delhi in future. 74

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