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Public awareness on small business policy and its implications

Author Hong,Seokil Date 2016.12.26 Issue No
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Koreans presume small business to have a low possibility to grow, but to have contributions to the Korean economy as much as large business.
◎ They also tend to believe that small business has an excessive competition, and that it is usually for those who cannot get a job.
The level of small business policy does not satisfy its importance.
◎ Overall importance of policy is 68.4 points, while current policy is 40.6 points with 27.8 point difference.
◎ In the aspects of small business policy, the first came the employment and social safety net (32.8 points), followed by local economy (29.0 points), consumers (26.5 points), SMEs (22.8 points) and beyond.
◎ Among other small business policies, management stableness of the existing small business, improvement of competitiveness of goods and services, and competition easing were pointed out to be important.
◎ Koreans agree with the regulations on large business and the protection on small business, stating they are ready to endure hardship.

 

Almost 69.2% of Koreans believe that policy on small business needs to be strengthened.
◎ Strengthened basis of growth for small business, expansion of social safety net, maintaining rational prices, and job creation of local areas were highlighted.
◎ As major players to push for policy, local governments were regarded to be more desirable than central government agencies.

 

Implications
◎ It is necessary to strengthen small business policy, focused on the aspects of employment, social safety net, and local economy.
◎ Differentiated policies need to be pursued, considering different levels of competitiveness of small business of each area and occupation.
◎ It is necessary to regulate large business to protect small business, and make linkages among businesses that improve the competitiveness of small business.
◎ It is necessary to strengthen the role of local governments when pursuing policies, and step up the cooperation among central government agencies.