This study examines the start-up support system for small- to medium enterprises (SMEs), and determines directions for future development.
The key task of the Korean economy in 1980 was to shift from quantitative unbalanced development to qualitative and balanced development policy. Thus, the balancing of development among large enterprises and SMEs is a key issue in many academic and industrial fields.
The consistent development of SMEs becomes the foundation for economic and social development, and it is recognized as an essential factor in promoting positive industrial policy. Specifically, the role of SMEs has been crucial in the process of industrial reformation and advancement. Supporting SMEs at the start-up stage of development is a necessary political incentive in SME growth.
Since 1984, the government has recognized the necessity for start-up support, and has developed measures to embed business start-up support policies. Of these measures, the most conspicuous are the support policies established in finance and tax systems.
However, as the types of businesses supported by these policies were limited, the effect of these policies was limited, and the value and relevance of the policies were also difficult to assess.
The direction for development of the SME start-up support system was reviewed, with a focus on finance and taxation systems. The measures for the expansion of supply scale of start-up money, formation of start-up financial conditions, and the supplementation of mortgage capacity of the starter should be strengthened. Systemic mechanisms should be developed so that small institutions such as mutual savings and finance companies, and credit associations may support start-ups as the supplementary financial support systems. Also, the current system, which is applied to SMEs that were established within the last year, should be altered so that small and medium enterprises which were established within the last two years are also supported. Moreover, the enterprises should be specifically managed so that the start-up support funding is not appropriated for other purposes. Measures to expand finance for stable and effective operation and measures for efficient support with government funding should be sought.
The types of SME start-ups that receive the support of taxation should be expanded. It is necessary to establish a system to determine the scale of start-up support money, which is granted by financial institutions, from tax, considering that investments in SME start-ups higher risk compared with other support structures.
중소기업창업지원제도와 그 발전방향(Business start-up support system for Small and Medium Enterprises (SME) and the direction of development)
금융 및 세제를 중심으로(Focused in finance and taxation systems)
|Series Title; No||정책연구시리즈 / 87-02|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Entrepreneurship|
|Holding||KDI; KDI School|