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http://dx.doi.org/10.11627/jkise.2017.40.4.038

Financial Performance Analysis of Government-Supporting Consulting Business to Small and Medium Enterprises : Focused on Corporate Growth Supporting Center in KICOX  

Jung, Hai-Il (Business Consulting Department, Hanyang Graduate School)
Choi, Jeong-Hye (Business Consulting Department, Hanyang Graduate School)
Lee, Sang-Ryul (Division of Business, Hanyang University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.40, no.4, 2017 , pp. 38-45 More about this Journal
Abstract
As the competitiveness of SMEs (small and medium enterprises) is getting more and more improved and globalized, the government provides various consulting services to secure the competitiveness of small and medium firms and support stable growth. However, the assessment of the result from the government's support is generally focused on non-financial factors, such as customer satisfaction and analysis of improvement effect. This paper is in regards to the statistical analysis of how much the government's support in the form of providing consulting services contributes to financial outcomes in terms of profitability and growth. ROA (return on asset) and ROS (return on sales), which are investment profitability and sales profitability respectively, are chosen as an indicator of profitability. For analysis of growth, sales revenue and total asset growth are used. The samples are 44 corporations which are supported by government, and 150 corporations which are selected for comparison, with corporate growth support center program by the Ministry of Trade, Industry, and Energy chosen as the consulting model. After gathering the yearly balance sheets and income statements of the samples from CRETOP, Korea Enterprise Data, the analysis is conducted in the way of identifying the statistical significance of financial difference in the same period between corporates taking consulting services and corporates which have not, and the difference of financial outcomes from the corporates taking consulting services before and after consulting services. As a result, in terms of business growth, it is turned out to have positive difference both in growth ratio and profitability compared to the compared corporations at the significant level. Therefore, it is obvious that the consulting program which government provides to SMEs have direct influence practically to the corporates' management performance.
Keywords
Small and Medium Business; Consulting; Financial Outcome Analysis; Management Consulting;
Citations & Related Records
Times Cited By KSCI : 5  (Citation Analysis)
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