SMBA Pushes for Creation of 200,000 Jobs in Small and Medium Business Sector in 2010
SMBA Pushes for Creation of 200,000 Jobs in Small and Medium Business Sector in 2010
  • Lee Kyung-min
  • 승인 2010.01.03 01:00
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Hong Suk-woo, Adminstrator of Small and Medium Business Adminstration (SMBA)

Small and Medium Business Administration (SMBA) is making a strong push for creation of 200,000 jobs in the small and medium business sector in 2010, a top official of the SMBA said.

Noting that SMBA exerted all out efforts to help small and medium enterprises (SMEs) tide over economic the crisis in 2009, Hong Suk-woo, an administrator of SMBA, said that the agency will place its emphasis on creating 200,000 jobs in the small and medium business sector in 2010.

In an interview with Korea IT Times, Hong said, "SMEs have been greatly contributing to offering jobs to people more than large companies do. For instance, the number of workers at SMEs increased by 2.8 million from 8.27 million in 1997 to 11.15 million in 2007. But, the number of workers at large companies decreased by 1.06 million from 2.52 million to 1.46 million during the corresponding period."

To create 200,000 jobs in 2010, SMBA will stage a campaign to spread youth entrepreneurship and accelerate business start-up activities this year, he stated.

"As part of the SMBA's efforts to spread youth entrepreneurship, heads of successful venture companies will educate 100,000 youths on entrepreneurship. SMBA will also spread the spirit through TV, newspapers and Internet," said Hong.

SMBA will support into the project to help high-educated people and women at home establish one creative man company.

Along with this, the SMBA will actively foster 53,000 people in keeping with demands for skilled manpower by small and medium venture companies by making the best use of 60,000 DBs on job information, he said. 

Job creation through start-up companies 

Hong said, "There are three methods to create job activities through the spread of entrepreneurship, expansion of employment by existing companies, and resolution of mismatches on jobs.

"SMBA is focusing on acceleration of start-up activities rather than expansion of employment by existing companies because it is most effective for start-up companies to create jobs," said Hong.

However, the SMBA will also employ a policy to expand employment through existing companies, Hong said. Related to this, the SMBA will expand the volume of public purchase from companies expanding employment.

Systematic management for sustainable growth 

SMBA will carry out elaborate and delicate policy management to strengthen its role of creating more jobs for start-ups, Hong said.

In line with this, it will continuously improve regulations related to procedures for start-up, creation of favorable business environment and offering of good location, he said.

It will also enhance efficiency of infrastructure related to start-up at 282 business incubator support centers and four idea business centers, he said.

"By faithfully implementing the policy to activate business start-ups, we could create 200,000 jobs in the small and medium business sector in 2010, including 10,000 jobs in manufacturing and 180,000 jobs in services," the administrator said. 

Government's plan to foster 10,000 venture companies 

The government recently announced a step to foster 10,000 venture companies by making the best use of ability of universities and research centers armed with business incubator centers and laboratories to support technology start-ups.

To this end, it established a business incubator R&D program to graft research achievements of universities and research centers on business start-ups and expanded budgets related to technology start-up business.

It plans to support joint development projects among industryies, academyies and research centers and to develop business incubator technology.

In particular, it will create a venture fund by 2012 to make active investments in technology start-ups and green technology and other new growth sectors.

Along with this, it will prepare a strategy to foster bio technology (BT) venture companies jointly with the Ministry for Food, Agriculture, Forestry and Fisheries, while mapping out a plan to foster culture contents venture firms with the Ministry of Culture, Sports and Tourism. 

Effects of venture boom on Korean economy 

In the 2000s, the boom of establishing venture companies carried out a locomotive role in tiding over the then Asian financial crisis, achieving high economic growth and creating a huge number of jobs.

Venture companies achieved a high annual average sales growth of 16.1 percent during the 1998-2007, compared with 6.5 percent for large companies and 5.9 percent for general small and medium companies.

During the corresponding period, venture firms also posted the highest employment growth rate of 21.4 percent, compared with negative growth of 4.8 percent for large companies and 4.5 percent for general small and medium companies, greatly contributing to creating jobs.

In terms of export increase rate, venture firms also topped with 20.7 percent during the cited period, much higher than 11.9 percent for large companies and 12 percent for general small and medium companies.

In particular, venture firms made great a contribution to settling down new corporate culture and new growth models in the domestic market, Hong said.

"During the period, the number of groups for start-ups soared from 76 to 767 and the number of venture companies established by professors and researchers surged from 582 to 1,738, building new cooperation models between academic and industrial sectors," said the administrator.

Meanwhile, the number of venture companies has increased to 202, three Korean venture firms were listed on the Nasdaq, and 112 venture companies succeeded in producing the world's top-tier products, indicating the possibility that Korean venture firms can develop into large companies or global enterprises, he said.

In a related development, the government plans to foster green ventures in the coming years. It already designated 117 technologies as the promising SME-type green ventures 46 in new & renewable energy, 44 in energy efficiency improvement, and 27 in environment-friendly sector, Hong added.


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