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The Promotion of Global Hidden Champion and the Policy Reflecting the Factors Behind the Success of Small but Strong Enterprises Are Urgent

Author Lee Young Ju Date 2013.05.09 Issue No 458
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It is urgent to promote global small but strong companies in order to strengthen the sustainable growth engine for Korean industry and to create quality employment.

 

However, the prospect for the promotion of small but strong enterprises is not so optimistic due to the structural problems such as the persisting high dependency of the domestic small and medium sized and strong medium- sized companies on domestic demand and their weak global competitiveness

- In 2011, the ratio of the overseas sales among the total sales recorded by domestic small and medium-sized enterprises, remains merely 13.2 % and the ratio of the export volume achieved by small and medium sized and strong medium-sized enterprises remained only 30%among the total export volume.

- The global competency of the domestic small and medium-sized and the strong medium sized enterprises reached merely 54.4 point as of 2012.

-The results of the survey conducted by KIET in 2012, show that the base for the global small but strong companies is weak, as the small and medium-sized and strong medium sized enterprises which have great potentials to grow into global small but strong companies, recorded merely 12%, among the total respondents.

 

The results of the empirical analysis on method to promote global hidden champion, show that the successful global small but strong enterprises are equipped with the global market expansion capability, global consumer-oriented strategy and global innovation capacity, and lower the global market entry barriers.

 

Therefore, it is desirable to promote global hidden champion through the policies reflecting the factors behind the success of the global small but strong companies as follows:

- To establish the customized support system which is specialized for the improvement in policy selection for the small and medium-sized and strong medium-sized enterprises equipped with sustainable globalization capacity, and the system for the support demand from the enterprises.

- To strengthen the function of generalized policy adjustment in order for the combination and association of the various relevant projects

- To expand the base for small but strong enterprises through the restructuring of the major support projects

- To enhance the success rate of the support by boosting the application for the support made by the enterprises which have the readiness for globalization and strong will

- To induce the creation of quality jobs and new growth engine by reinforcing the mandatory requirement of the enterprises selected for the support project