Browse > Article

Entrepreneurship Policy Changes from the Perspective of Policy Paradigm  

KIM, Mansu (GSPA, Seoul National University)
KANG, Jae Won (Korea SMEs & Startups Institute(KOSI))
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.16, no.3, 2021 , pp. 43-58 More about this Journal
Abstract
This study analyzes the entrepreneurship policies of the previous Korean administrations from the perspective of the Policy Paradigm by Hall(1993). A total of 195 newspaper articles and 202 government documents were examined to identify policy paradigm shifts through an analysis of policy objectives, policy instruments, and changing quality of policy instruments by each administration. The first paradigm was built during the 5th and 6th Republic, where 'Support for Small and Medium Enterprise Establishment Act' was enacted in 1986 to promote and support start-ups in the manufacturing sector. Next is the so-called 'people's government' period where 'Act on Special Measures for the Promotion of Venture Businesses' was enacted to tackle the challenges posed during the 1997 Asian financial crisis. A new policy goal was set to promote and nurture venture companies seeking subsequent means to achieve it. The third paradigm shift took place during President Moon's administration in order to effectively respond to the issues stemming from the fourth industrial revolution and the COVID-19 pandemic. Through the overall revision of the 'Support for Small and Medium Enterprise Establishment Act', the scope of startups were expanded, new industries and technology startups were supported and promoted, and venture investment-related laws were streamlined. In addition, the Small and Medium Business Administration was promoted as the Ministry of SMEs and Startups, enabling them to take initiative in implementing startup policies. Particularly, this study focuses on examining the low survival rate of startup companies and the revitalization of private investment as rising policy issues for recent startups, and suggests the improvement direction due to startup policy paradigm shift.
Keywords
entrepreneurship policy; startup policy; policy paradigm shift;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Kang, J. W., Sohn, H. Y., Huh, T. W., Seo, R. B., Kim, M. S., Park, M. R., & Baek, Y. G.(2020). Startup Ecosystem Scenario Analysis(20-4). Seoul: Korea SMEs & Startups Institute.
2 Joint Ministries(2012). Youth entrepreneurship and re-challenge promotion plan reflecting the voices of the field. Press release. Retrieved 2021.3.21. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=36656.
3 Naver News Library(2020). News Library, Retrieved 2020. 12.2. from https://newslibrary.naver.com/search/searchByDate.nhn.
4 MoE.MSIT.SMBA(2013), 5-year Plan for college start-up education(2013~2017): Creating an ecosystem of start-up education with creativity, challenge, and hope. Retrieved 2021.3.21. from https://www.korea.kr/archive/expDocView.do?docId=34448.
5 MoEST(2011). University industry-academic cooperation group is responsible for technology commercialization to employment and start-up support. Press release. Retrieved 2021.3.21. from https://www.korea.kr/news/pressReleaseView.do?newsId=155801720&pageIndex=3504&repCodeType=&repCode=&startDate=2008-02-29&2019-01-19&srchWord=.
6 Oh, C. H., Park, J. Y., Shin, Y., Woo, Y. S., Lee, M. C., & Chang, H. J.(2012). The 50 years of Small and Medium Business Policy and The future of SMBP. Seoul: The Korean Association for Policy Studies.
7 Park, J. K.(2013). 2012 Knowledge Sharing Program: Small and Medium Enterprise Promotion Policy(11-7003625-000045-01). Sejong: SMBA. Ministry of Economy and Finance.
8 Joint Ministries(2018). Youth Employment Measures. Press release. Retrieved 2021.4. 2. from https://www.korea.kr/news/pressReleaseView.do?newsId=156258828.
9 Choi, W. S., Manyika, J., Kim, J. W., Lim, J. S., Oh, S. Y., Kim, S. H., Lee, K. H., & Ahn, J. H.(2015). Establishment of a virtuous circle in the venture industry: Exploring sustainable long-term growth paths to create an ecosystem for Korean venture companies. Seoul: McKinsey & Company Seoul.
10 Park, S. W.(2012a). Analysis of Patterns of Small and Medium Business Support Policy Changes: Focusing on Comparison of Kim Daejung, Roh Moohyun and Lee Myungbak Government. Public Policy Review, 26(3), 27-58.   DOI
11 Big Kinds(2020). News Search. Retrieved 2021.3.31. from https://www.bigkinds.or.kr/v2/news/index.do.
12 Cho, D. H.(2014). Job Creation Performance of Startups and its Policy Implications in Korea(Research 2014-732), Sejong: KIET.
13 Cho, D. H.(2018). Analysis of Sustainable Growth Capability of Start-up and Survival rate Improvement Policy(Research 2018-870), Sejong: KIET.
14 Ha, K. S., Hong, K. P., & Lee, C. W.(2017). A Studies on the Characteristics of Korean Government Policies for Venture Business During 2002-2012. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 12(1), 15-24.   DOI
15 Hall, P.(1993). Policy Paradigms, Social Learning, and the State: The Case of Economic Policymaking in Britain. Comparative Politics, 25(3), 275-296.   DOI
16 Im, G. H., & Jeong, Y. H.(2014). A study on Major Issues and Improvement Tasks of Venture and Start-up Policy. Seoul: NABO.
17 Jeong, J. W., & Choi, Y. B.(2021.4.13). The reason for Coupang's listing "differential voting rights." The House of Representatives will discuss the matter later, MBN, Retrieved 2021.4.15. from https://www.mk.co.kr/news/politics/view/2021/04/355080/.
18 Yang, S. I.(2014). The principle of policy change. Seoul: Pakyoungsa.
19 Ministry of SMEs and Startups(2019). Increased support for more women's start-ups and stronger women's companies. Press release. Retrieved 2021.4.15. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=1012639&parentSeq=1012639.
20 Isenberg, D.(2011). The Entrepreneurship Ecosystem Strategy as a New Paradigm for Economic Policy: Principles for Cultivating Entrepreneurship(The Babson Entrepreneurship Ecosystem Project), Wellesley, MA: Babson Global.
21 Joe, B. M., & Shin, H. H.(2020). Analysis and Proposal of Startup Policy: Focusing on step-by-step Implications such as Startup, Growth, and Recovery. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 15(2), 97-110.   DOI
22 Joint Ministries(2008). Measures to revitalize technology start-ups. The 1st SME Strategy Conference source book. Retrieved 2021.3.21. from https://www.kdi.re.kr/policy/ep_pview.jsp?idx=95004&&pp=100&pg=75.
23 Joint Ministries(2014). Detailed promotion plan for technology start-ups. Press release. Retrieved 2021.4.1. from https://www.korea.kr/news/policyBriefingView.do;JSESSIONID_KOREA=hLTTdhTQQqcmJht4T6lqWBM0vY2VGKghZDhmDs9lHdQcpnQbLXwP!-1183978726!90465591?newsId=148775683.
24 Park, S. W.(2012b). Analysis of Conformability between Policy Goals and Policy Instruments on Supporting Policy of SMEs: Focusing on Comparison of Kim Daejung, Roh Moohyun and Lee Myungbak Government. Journal of Governance Studies, 7(2), 111-143.   DOI
25 Seol, M. H., & Choi, J. I.(2017). A Study of Business Incubator Policy and Research: A Review of Korean Literature. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 12(3), 147-161.   DOI
26 SMBA(2003). SMBA, Establishing and implementing a "five-year plan to revitalize start-up support". SMBA Press release. 2003.1.23. Retrieved 2021.4.15. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=2048&parentSeq=0.
27 SMBA(2005). Measures to Revitalize Tech-Innovative Start-up. SMBA Press release. 2005.3.18. Retrieved 2021.4.15. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=2655&parentSeq=0.
28 Joint Ministries(2010). Measures to support youth technology and knowledge start-ups. The Ninth National Employment Strategy Conference source book. Retrieved 2021.3.20. from https://www.korea.kr/news/policyBriefingView.do?newsId=148698196.
29 Baek, H.(2012). A Comparative study on Development Policies of the Korean Venture Enterprise(Basic research 12-18), Seoul: Korea Small Business Institute.
30 Kim, N. R.(2017). Results of a survey on the re-starting support system for failed entrepreneurs. Seoul: IBK Economy Institute.
31 Kim, S. W., & Jin, W. S.(2020). The Scale-up Plan for Venture Businesses. STEPI Insight, (Vol 258). Sejong: STEPI.
32 Lee, W. J., Kim, J. C., Kim, G. Y., Eom, S. K., & Park, K. T.(2017). A study on Panel Data Establishment and Policy Direction of ICT Venture Ecosystem Change Analysis(II): A study on Status and Performance Analysis of Venture Business Support Policies(NRC Collaborative Research Report 17-27-04, KISDI Basic Research 17-12-04). Sejong: KISDI.
33 Ministry of SMEs and Startups(2021). 172.8547 trillion won worth of venture investment companies over the past six years. Press releases, Retrieved 2021.4.15. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=1024852&parentSeq=1024852.
34 National Assembly Library(2020). Startup Promotion Policy. Fact Book(2020-4. 80). Seoul: National Assembly Library.
35 SMBA(2013). SMBA, Support for senior start-ups customized for retirees. Press release. Retrieved 2021.4.15. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=42012&parentSeq=0.
36 Yang, H. B.(2017). A study on the efficiency of start-up policy promotion. I-KIET Industrial Economics(Issue 37). Sejong: KIET.
37 Yang, H. B., Han, C. Y., & Kim, J. S.(2018). A study on Improvement of start-up policy effectiveness, Issue Paper(2018-441), Sejong: KIET.
38 Kim, S. H.(2021.3.30). KTB Networks Sells"Baemin"...Twe nty-six times earnings, Jackpot., Chosun Biz, Retrieved 2021.4.15. from https://biz.chosun.com/site /data/html_ dir/2021/03/30/2021033001016.html.
39 Kim, S. W. & Kim, K. M.(2020). A study on the startup growth stage in Korea. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 15(2), 127-135.   DOI
40 Lee, S. H.(2021). The Necessity of structural reform for marginal enterprises to enhance corporate mobility. Capital Market Focus(2020-03). Seoul: Korea Capital Martket Institute.
41 Lee, S. W.(2014). New impetus for the creative economy, One-person creative enterprise, IP review, No.18(Mar. 2014), Seoul: KIIP.
42 Lee, W. J. & Oh, H. M.(2019). A Study on the Characteristics of Korean Venture Start-up Policies in 2013-2016. Journal of the Korean Entrepreneurship Socieity, 14(1), 129-159.   DOI
43 Chung, J. G., Choi, J. W., Lee, S. W., Chung, J. K., & Chung, K. H.(2010). The principle of policy studies. Seoul: Daemyung.
44 Ministry of SMEs and Startups(2018). Ministry will provide up to 10 billion won to 100 technology-based women start-ups. Press release. Retrieved 2021.4.15. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=1007410&parentSeq=1007410.
45 Kim, M. H.(2017). The Paradigm Shift in Korea's Low Birthrate Policy? Exploring the Third Basic Plan for Low Fertility and Aging Society. Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology, 7(10), 589-597.   DOI
46 Lee, Y. S., & Moon, S. W.(2016). The Study on the Relationships among New firm Creations, Survival rate and Job Creations: Based on Seoul Case from 1994 to 2013, Korea Business Review, 20(2), 121-141.   DOI
47 Ahn, S. B., & Shin, Y. J.(2017). The study of a status and development plan for the startup support system in South Korea. The Korean Academy of Business History, 32(2), 149-172.
48 Choi, N. H.(2017). An analysis on the Feedback Structures of the Limitation and Growth of Korean Entrepreneurial Ecosystems. Korean System Dynamics Review, 18(4), 117-145.   DOI
49 Fritsch, M., & Mueller, P.(2004). Effects of New Business Formation on Regional Development over Time, Regional Studies, 38(8), 961-975.   DOI
50 Ha, K. S., Kim, D. H., Yoo, B. J., Jin, S. J., Park, B. J., Kang, J. H., & Kim, S. J.(2013). A study on changes and evaluation of Start-up policy. Seoul: The Korean Society of Business Venturing.
51 Han, J. H.(2006). Development process and vision of venture and start-up policy. SME Policy, Results and Task for the last 10 years Seminar, Seminar marking the 10th anniversary of the opening of the SMBA, Seoul: SMBA.
52 Han, J. M.(2020). A Study on the Improvement of Support for Small and Medium Enterprise Establishment Act. Ajou Law Review, 14(3), 62-89.   DOI
53 Hong, D. U., & Jun, B. H.(2019). A Study on the Domestic Scale-up Policy Direction through the Analysis of Scale-up Support Policy for Global Startups. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 14(6), 11-27.   DOI
54 Shane, S.(2009). Why encouraging more people to become entrepreneurs is bad public policy, Small Business Economics, 33, 141-149.   DOI
55 SMBA(2006). 7.6 billion won for women's start-up and management innovation. Press release. Retrieved 2021.4.15. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=2949&parentSeq=0.
56 SMBA(2011a). Creating 4,000 jobs through senior start-ups and re-employment. Press release. Retrieved 2021.4.15. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=31215&parentSeq=0.
57 SMBA(2011b). SMBA is accelerating to spread entrepreneurship and support young entrepreneurship. Press release. Retrieved 2021.4.15. from https://www.mss.go.kr/site/smba/ex/bbs/View.do?cbIdx=86&bcIdx=32171&parentSeq=0.
58 Hong, C. K., Oh, C. H., Lee, J. H., Kim, H. A., Shin, Y., Woo, Y. S., Chang, H. J., Cho, T. J., Yoo, J. M., Han, J. H., Kim, K. C., Lim, C. U., Bae, Z. T., Song, C. S., Choi, K. C., Lee, H. T., Bae, T. J. & Lee, I. H. (2019). 60 years of Small and Medium Business Policy, Second Year Project(Policy Research 19-1). Seoul: Korea Small Business Institute.
59 Jeong, D. H.(2015). How do we solve the terrible zombie company problem? National Economy(2015. 12), Sejong: KDI.