China's individual businesses rising steadily

BEIJING - China's individually owned businesses have seen a steady increase in terms of number, business scale and contribution to the economy, an official has said.

Online postings have recently claimed the number of such businesses was dropping, provoking worries about their current state and future development.

"China's individual businesses have maintained the momentum of rapid and steady growth since the launch of reform and opening-up policy in 1978," Ma Fu, head of the private economy regulation department under the State Administration for Industry and Commerce (SAIC), was quoted by People's Daily on Tuesday as saying.

The number of individuals who started businesses rose from 140,000 in 1978 to 37.56 million in 2011, representing an average annual growth rate of 18.5 percent, according to data from the SAIC.

"Individual businesses play a significant role in creating jobs, increasing fiscal revenue, facilitating people's daily lives and promoting social stability," Ma said.

By the end of 2011, individually owned businesses provided a total of 79.45 million jobs and had a total registered capital of 1.62 trillion yuan ($255.48 million).