[Abstract]
The present small-enterprise policy which has been establishing since IMF crisis in 1997 has been very meaningful in the sense that the policy has made relevant regulation, laws, etc. for small-enterprise whose business units are making 87.5% of total businesses and employees comprising 38.9% of total number of employees in Korea. Yet the policy nature as welfare and a count-measure against unemployment has resulted in numerous number of livelihood start-up and in turn structural problem such as the decrease of operating profit in small enterprises due to fierce competition among small enterprises.
Recently, global financial crisis, the widening gap between the rich and the poor, increase in unemployment from economic downturn, social injustice, etc. has brought the issues regarding sustainable growth, welfare, sharing․consideration, corporate social responsibility. Consequently, in Korea, the concepts regarding ¡°win-win cooperaton,¡± ¡°win-win growth,¡± and ¡°eco-systematic development¡± has been naturally drawn to attention.
This paper propose ¡°Small-enterprise 3.0¡± for small-enterprise being a dynamic force for new growth by fostering innovative small-enterprise and recognizing small-enterprise as foothold for small&medium business and large corporations under the age of limitless competition from FTA. The new paradigm of ¡°Small-enterprise 3.0¡± being productive․active low-income welfare is very important to revitalize low-income economy and for the true ¡°win-win growth¡± between the corporations and small-enterprise.
Recently the downturn in domestic economy, the highness of prices, increase in the price of raw materials, etc. had adverse impact on small-enterprise. It is necessary to build system for protection from disclosure thru improvement in management, competitive start-up, and flexible termination. This study proposes ¡®SEM(Small-Enterprise Ecosystem Management)¡¯ working under small-enterprise new governance to foster innovative small-enterprise for the age of ¡®small-enterprise 3.0.¡¯
The environment for small-enterprise ecosystem is made of laws, regulations, and location requirements, etc. For 2.7 million of outnumbered small-enterprise making virtuous circle under small-enterprise 3.0,¡¯ both welfare and innovative small-enterprise ecosystem need to be operated simultaneously and gradually innovative system needs to be stood up.
Renewable Survival Consulting for Ultimate Enterprise(RESCUE) needs to be operated coupled
with competitive start-up assistance under the circumstances of 0.8 million of small-enterprise being going out of business per year, more than 30% of small-enterprise facing bankruptcy, and net profit per month being under 1 million won for more than half of small-enterprise. Solving for the outnumbered small-enterprise is not to limit start-up but to foster innovative small-enterprise and build RESCUE system to make small-enterprise in need work by itself and at the same time closed small-enterprise virtuous circle. By doing so, the center of eco-system moves gradually to innovative one from welfare style.
Innovative small-enterprise needs to be fostered to make small-enterprise as a dynamic force for new growth. Small-enterprise from the point view of household needs to move to the territory of corporate system for financing and investing. The eco-system virtual structure of ¡¸producer¡æconsumer¡ædecomposer¡¹is very important for skeleton of small-enterprise eco-system. The role of small-enterprise capital as consumer in eco-system is the key to foster innovative small-enterprise. It goes beyond the limitation of small-enterprise policy fund which subsidizes 300billion won per year for small-enterprise at low interest rate. Small-enterprise capital is a holding company system which is made of angel, small-enterprise, financial institutions including banks, real estate investment trusts(REITs), PEF, and consulting firm, etc.
It is important to make unit-ecosystem works properly by each region on top of national level of eco-system since small-enterprise bases on the region. Therefore this study proposes ¡®Small-Enterprise Ecosystem Management(SEM)¡¯ as a new model for ¡°Regional Business-Area Revitalization in Korea¡± which makes small-enterprise to attain sustainable growth without outside control and correction remedies SEM works based on compact commercial district(CCD) which is a unit-ecosystem incorporating population, area size, GDP, etc. SEM designates CCD by region and nation and integrates CCDs under small-enterprise new governance.
Presently there are many inefficiencies and overlapped government aids for the support of small-enterprise since no organization advocates small-enterprise new governance. It is inevitable if no new paradigm is presented according to swiftly changing environment that corporations disappear. The new view for small-enterprise as a dynamic force for new growth and new paradigm for small-enterprise needs to be formed. For this purpose, ¡°Small-Enterprise (SEM)Association¡± needs to be formed to lead ¡°Small-Enterprise 3.0 Era¡± which recognizes small-enterprise as foothold for small&medium business and large corporations by constructing small-enterprise eco-system infrastructure and makes new related laws.