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High-growth SMEs' job creation performance and its implications

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Frame of Image hat the primary sources of new jobs are neither large enterprises nor SMEs, but high-growth firms. His conclusion also represented a clear breakaway from Birch’s 1981 study in which he discovered through empirical analysis that job creation primarily rested with SMEs with 100 employees or less. He further stressed the need to foster SMEs to maintain their role in the creation of employment. Bir c h ’ s 1 9 9 4 s t u d y s p u r r e d p o l i c y m a k e r s i n industrial countries to shift their focus from fostering SMEs as a whole, to identifying and nurturing those with high growth potential. Several OECD member nations have since conducted active research into such high-growth firms and focused on their role in job creation, but such research in Korea has been rather sluggish so far. To help redress this, this paper briefly examines
the links between high-growth firms and the relevant previous research at home and abroad, and seeks to measure the job-creation performance of high-growth firms by using KISVALUE-Data on individual companies in the domestic manufacturing sector. Through this process, the study aims to deter mine whether Kor e a n f i r ms have ade quately fulfilled their hiring potential. In addition, this paper looks into changes in the number of high-growth SMEs in the domestic manufacturing sector in order to better forecast their job-creation capacity in the future with the goal of judging whether such high-growth SMEs will be able to continue to maintain


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Title High-growth SMEs' job creation performance and its implications
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Material Type Reports
Author(English)

Cho, Deok-hee

Publisher

[Seoul]:Korea Institute for Industrial Economics & Trade

Date 2011
Journal Title; Vol./Issue KIET Industrial Economic Review:vol. 16(no. 4)
Pages 8
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Industry and Technology < Entrepreneurship
Social Development < Employment
Holding KIET; KDI School

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