A Study of the Effectiveness on the Regional Policy by the Corporate Performance Analysis in Busan
Jong-Rae Cho, Young-Seok Ock · The Journal of Internet Electronic Commerce Resarch · 2018
Since SME (Small and Medium Enterprise) sector accounts for about 85% of Korean employment, creating jobs through SMEs is an important task. The growth of SMEs leads to the revitalization of the national economy by creating jobs and income in the local area. Therefore, it is important for government and related public institutions to support SMEs, which play an important role in the national economy, to build a competitive economy.BR The purpose of this study is to evaluate the effectiveness of the support program for the SMEs in the local area, especially in Busan. Therefore, we analyze the performance of companies and compared effectiveness between the beneficiaries in MOTIE (Ministry of trade, industry and energy) (Group A), TechnoPark (Group B) and other regional public institutions (Group C) and non-beneficiaries(comparison group, Group D). The results were represented by the average rate of sales growth rate and the average rate of employment growth according to the company size, the establishment of company research institutes, the average number of patents, the designation of venture company, the presence of Innobiz (Innovation Business) certification, and the number of R &D employee. The average sales growth rate and the average employment growth rate, which are the main indicators of the results of the validity analysis, as follows. As a result, the average sales growth rate of beneficiaries is 80.04%, which is higher than theBRaverage of non- beneficiaries - 26.2%. And the support effect of TechnoPark (Group B) is the highest, and the support effect of other regional public institutions is next. On the other hand, it is shown that dependency of the average employment growth rate on the company size is significant, and that the average employment number of both beneficiaries and non-beneficiaries increases, but the significance level is not significantly different at the 5%. Therefore, it is shown that the relationship of key indicators that improve the efficiency in the beneficiaries by the government support lead directly to the improvement of the performance of sales and employment.