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Fostering Knowledge- and Technology-Based Startups by Women

Author Yang, Hyun-Bong Date 2013.02.08 Issue No 550

The number of business startups founded by women is on a steady rise, reflecting the growing rate of participation by women in the economy. Yet the rate of startups by women in Korea was only 19.8 percent (2010), one of the lowest rates among the OECD member-states.


○ As the demand for goods and services satisfying the needs related to beauty, emotions, softness, and creativity continues to grow, it is important to create as many jobs in response by fostering knowledge- and technology-based business startups by women and drawing upon women’s comparative advantages in emotional sensitivity and creativity.


○  The Korean Government’s current policy for women’s startups lacks consistency and is also incapable of providing systematic and effective support.


○ In order to encourage women to found knowledge- and technology-based startups in the future, it is necessary to improve the effectiveness of the support projects and the status of the involved resources by:


- Providing specialized and professional training and startup educational programs that promote entrepreneurism among women;


- Providing a policy fund for women’s startups as part of the startup fund provided by the Small and Medium Business Administration and introducing preferences for women into the

administration of the Technology Guaranteed Fund;


- Providing mentoring and consultations for women entrepreneurs seeking to start knowledge- or technology-based businesses;


- Enhancing the quota of goods and services that public agencies and organizations ought to purchase from startups run by women; 


- Launching verification centers, professional entrepreneurism centers, and self-employment centers to help improve the prospects of success for women’s startups.