1 / 21

May 23, 2013

VI Astana Economic Forum. Korea’s Start-up Promotion Policy - Young Entrepreneurs Start-up Academy -. May 23, 2013 . Contents . I. Korea’s Economic Growth and Role of SMEs. II. Importance of Youth Start-ups. III. Korea’s Youth Start-up Promotion Policy. IV.

gerek
Download Presentation

May 23, 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. VI Astana Economic Forum Korea’s Start-up Promotion Policy - Young Entrepreneurs Start-up Academy - May 23, 2013

  2. Contents I Korea’s Economic Growth and Role of SMEs II Importance of Youth Start-ups III Korea’s YouthStart-up Promotion Policy IV Young Entrepreneurs Start-up Academy

  3. Ⅰ. Korea’s Economic Growth and Role of SMEs 1 Development of the Korean Economy Korea has transformed from one of the poorest countries into one of the tenth largest economies in just about 50 years of economic development. Mature Stage (2000s~) - GNI(Gross National Income): (1953) $67 → (2012) $22,720 The economy has grown 300 times in 60 years since the establishment of Korean government. ’07 ($21,632) Transition (1990s) Rapid Growth → Economic Stability (1970s~1980s) Industrialization (1960s) ’96 ($12,518) ’48 ’55 ’65 ’75 ’85 ’95 ’05 ’12 - 1/18 -

  4. Ⅰ. Korea’s Economic Growth and Role of SMEs Growing Status of SMEs 2 ■ SMEs: (1980) 29,779(96.6%) → (2010) 112,897(99.5%) ■ SMEs: (1980) 1,000,000 (49.6%) → (2010) 2,289,000(77.1%) ■SMEs: (1980)KRW 4.2 trillion(35.2%) → (2010)KRW 215.7 trillion47.4%) * Large Companies:(1980) 1,044(3.4%) → (2010) 618(0.5%) * Large Companies:(1980) 1,015,000(50.4%) → (2010) 679,000(22.9%) * Large Companies:(1980)KRW7.7 trillion(64.8%) → (2010) KRW 239 trillion(52.6%) - 2/18 -

  5. Ⅰ. Korea’s Economic Growth and Role of SMEs Role of SMEs 3 No. of Employees (with 5 or more employees) Added Value(with 5 or more employees) Growth Rate of R&D Budgets (Unit: KRW 100bn) (Unit: thousands) (2005~2010Annual Average) 18.6% 2,150 17.5% 104.1% 1,982 87.4%↑ 1,945 1,830 4.5%↓ 10.5% 678 9.6% 1,038 971 648 `99 `09 `99 `09 Medium Companies Large Companies `99 `09 `99 `09 SMEs SMEs Large Companies Large Companies SMEs SMEs created 320,000 new jobs in a decade (1999~2009) . R&D budgets of SMEs have grown to a 18.6% of annual average since the year of 2005. Added value from SMEs has continually increased in a decade (1999~2009), making bigger contributions than large companies. * Large companies saw a decrease of 30,000 jobs * Much higher compared with large companies (10.5%) and medium companies (9.6%) * Added value contribution rate (2009) - SMEs:50.5%, - Large Companies:49.5% - 3/18 -

  6. II . Importance of Youth Start-ups Breakthrough in Current Economic Difficulties 1 (3th) No. of start-ups (thousands) (8.5) (6th) (8.1) (65) Start-up CEOs under 30s (%) • No. of start-ups • CEOs under 30s Unemployment rate (%) (13th) (53) (11th) (7.7) (7.6) (47.6%) (16th) (19th) (4.2) (3.6) (3.2) (18.3%) `00 `09 `00 `09 `00 `09 • Unemployment • (Total) • Unemployment • (Youth) (Source: Donga Ilbo Entrepreneurship Center-Deloitte Consulting) (Source: Statistics Korea) (Source: SMBA) The number of new businesses is on the rise in recent years, but youth start-ups have been slowing down. Korea’s entrepreneurship index has been on a declining trend. Youth joblessness, being twice higher than national unemployment, has become a social issue. • Downward in innovative start-ups, but upward in self-employed for a living • Young people afraid of failure and • taking chances • Preference for government jobs and • large companies Increasing jobs and encouraging entrepreneurship through youth start-ups - 4/18 -

  7. II. Importance of Youth Start-ups Driving force of Income and Job Generation 2 Successful start-up businesses < Employment/Start-up Ratio and Lifetime Income > Annual Income (Job creation) Employment Start-up KRW 100m Failure Employment= Start-up Employment Retirement Lay-Off Start-up Failure 30 35 40 45 50 55 60 Age • Annual salary of college-grad-entry-level jobs: Large firms (KRW 3.5m), Medium firms (KRW 3m) • Small firms (KRW 2.25m), Government firms (KRW 2.8m) - 5/18 -

  8. II. Importance of Youth Start-ups Advancing Challenger Entrepreneurship 3 Nurturing innovative entrepreneurs by promoting youth start-ups - Innovative young entrepreneurs: leaders of job creation and creative destruction High Inventor Entrepreneur Creativity Promoter Manager Low A thrust of knowledge/creative economy (New Korean Government Policy) based on scientific and technological advancement Low High Managerial skills and networks Creative start-ups exploring the blue ocean - 6/18 -

  9. III. Korea’s Youth Start-up Promotion Policy Policy Direction and Programs 1 Policy Direction Building infrastructure that harnesses any entrepreneurs with ambition and marketable technology Creating an environment for advancing entrepreneurship and giving second chances Programs - 7/18 -

  10. Ⅲ. Korea’s Youth Start-up Promotion Policy Grants 2 Start-up Training (KRW 11.5bn) • Teenager Biz School: from elementary to high school students • Start-up School: prospective entrepreneurs and businesses less • than 1 year old • Biz Incubation College: prospective entrepreneurs & • businesses less than 1 year old • Young Entrepreneurs Start-up Academy: entrepreneurs under 39 • Start-up Tailored Program: prospective entrepreneurs and • businesses less than 1 year old • Research Start-ups: scientist-turned entrepreneur(s) • Leading Venture Start-ups: prospective entrepreneurs and • businesses less than 1 year old • Global Youth Start-up : prospective entrepreneurs and • businesses less than 6years old Realization ofStart-up (KRW 129bn ) Start-up • 16 programs • KRW 187bn Senior Start-up (KRW 1.5bn) • Start-up Capability Building Training: prospective entrepreneurs • over the age of 40 • Senior Biz Plaza: prospective entrepreneurs over the age of 40 • Start-up Infrastructure: members of business incubators • Commercialization: one-person business • App Factory: prospective entrepreneurs and businesses less than 1 yr old Others (KRW 45bn) - 8/18 -

  11. Ⅲ. Korea’s Youth Start-up Promotion Policy Major Start-up Grants(Realization of Start-up) (KRW billion) - 9/18 -

  12. Ⅲ. Korea’s Start-up Promotion Policy Loans 3 • Venture Start-up (KRW 1.27 trillion): SMEs less than 5 years old • Young Entrepreneurs (KRW 160bn): Entrepreneurs under the age of 39; • SMEs less than 3 years old Loans for start-ups (KRW 1.43 trillion) (KRW billion) - 10/18 -

  13. Ⅲ. Korea’s Youth Start-up Promotion Policy Mechanism of Young Entrepreneurs Loan Fixed annual interest rate of 2.7% Up to 100% of the principal may be relieved. Repayment obligation (past-due interest) Young Entrepreneurs Loan → Minimizing the fear of failure - 11/18 -

  14. Ⅲ. Korea’s Youth Start-up Promotion Policy Investments 4 Young Entrepreneurs Investment Fund(Korea Venture Investment Corp) FundSize: KRW 120bn Eligibility: young entrepreneurs under 39 Fund Management Mechanism Investment up to KRW 0.5~1.5bn per business Public org./College/ Research institutes Fund of funds Angel Investment Matching Fund (KVIC) Invest Fund size: KRW 350bn Angel investors Angel Investment Matching Fund Eligibility: prospective entrepreneurs, businesses less than 3 years old Matching /Investment & returns Services Investment and returns Investment up to KRW 300m per business Start-ups Angel Investment Support Center Hybrid Financing (SBC) Follow-upsupport Growth-sharing : KRW 40bn (CB purchase) Profit-sharing : KRW 110bn (Super-low interest rate loans under the condition of sharing in a slice of operating performance) - 12/18 -

  15. Ⅳ . Young Entrepreneurs Start-up Academy Background 1 Youth and high-tech start-ups have declined sharply despite steadfast increases in start-ups. * Fear of failure decrease in youth start-upsaging CEOs of SMEs economicgrowth potential threatened No. of start-ups in high-tech manufacturing Venture CEOs in their 20s & 30s No. of start-up SMEs Comprehensive package of finance, training, coaching, office space, product development equipment, and follow-up services (marketing and loans) is necessary to overcome uncertainties at the beginning of business start-up. Promoting youth high-tech start-ups + Generating jobs for youth+ Addressing aging SME CEOs Young Entrepreneurs Start-up Academy opened in March, 2011. - 13/18 -

  16. Ⅳ. Young EntrepreneursStart-up Academy SBC’s 33 years of expertise in SME support Zero in on young entrepreneurs start-ups • Providing loans to SMEs • - Business start-ups (prospective start-ups, SMEs, venture businesses), new growth, • commercialization of R&D results and business conversion loans • - Emergency business stabilization, small merchants and hybrid financing Loans (policy fund) • Developing HR for SMEs and promote start-ups by young entrepreneurs • - Enhancing management skills of CEOs (CEO course) and capabilities of employees • - Running the young entrepreneurs start-up academy HR (HR development) • Supporting early stages marketing and global cooperation • -Bolsteringlocal and overseas marketing of SMEs’ products: (domestic) HIT500, • (overseas) trade delegations, etc. • - Korea Desks(Malaysia, Indonesia), SME Support Center (Qingdao), • Industrial Coordinators (U.S., Japan, Germany and Dubai) Marketing • Resolving problems through company diagnosis and mismatch of jobs for SMEs • - Providing tailored support through company diagnosis • (consulting, foreign employment support, etc.) • - Addressing job mismatch by improving likability of SMEs to young job seekers • (Smile Story) Technology (consultancy, etc.) - 14/18 -

  17. Ⅳ. Young EntrepreneursStart-up Academy Role of Young Entrepreneurs Start-up Academy 2 Helping start-ups head off Death Valley Easy • < Young Entrepreneurs • Start-up Academy > • Technology development & loans • Specialized training & 1:1 coaching • One-stop services for • Marketing & HR management Research projects • Government fund • -Loan: KRW 3.8trillion -Guarantee: KRW 57.2trillion • Investment • Private funds Financing Overcome Death Valley • Government • R&D • (KRW 16 trillion) • Personal Investment • (KRW30-100m) Establishment Difficult Basic research Commercialization Development/prototype - 15/18 - Success rate of R&D commercialization in Korea: 10-40% (past 2 years: 37.7%) (UK:70%, USA:69.3%, Japan:54.1%)

  18. Ⅳ. Young EntrepreneursStart-up Academy Operation and Process 3 Budget KRW 25.4bn for 2013 (KRW 20bn in 2012) Eligibility • Ages under 39; CEOs whose startups are 3 yrs or less * Technology - intensive SMEs that strengthen job and value creation (manufacturing and knowledge services) Support R&D Grants Links Space Entrepreneurship+ practical skills 70% of the total expenses up to KRW 100 mil 24 Experts 1:1 coaching Loans, investment, marketing, etc Office, R&D rooms, etc. System Education Coaching - 16/18 -

  19. Ⅳ. Young EntrepreneursStart-up Academy Differentiated Features 4 • Korea’s an unparalleled one-stop(one-roof) start-up support package • for young entrepreneurs • Providing comprehensive supporting tools to increase high-tech start-up and • improve the success rate Boosting success rates • Focus on fostering qualified (future-oriented) young CEOs • Zooming in enhancing CEOs’ attitude and abilities as well as their success in new • product development • A dropout system(two mid-term tests, bottom 10% of trainees departed) • Guaranteeing the full independence to trainees but ruling out undevotedtrainees by • interim evaluation • evaluations • Follow up Services • Continuing post-graduate supports Tracing business records in a span of 5 • years after graduation • * Rewarding distinguished graduates with an additional loans up to KRW100 mil for one year - 17/18 -

  20. Ⅳ. Young EntrepreneursStart-up Academy Major Achievements 5 Major achievements forthe pasttwo years -Regional expansion: (’11) Ansanacademy(’12) Gwangu, Kyeongsan, Changwon • All graduates have started up their businesses, posting strong revenues • and creating new jobs. - 18/18 -

  21. Thank you!

More Related