1000 Domestic Social Ventures... 8 out of 10 Are Young Companies Within 7 Years of Establishment

Ministry of SMEs and Startups Announces First 'Social Venture Survey' Results

Source: Ministry of SMEs and Startups

[Asia Economy Reporter Moon Hyewon] Among 1,000 domestic social venture companies, 79.1% are social ventures within 7 years of establishment, indicating a large proportion of young companies.

On the 6th, the Ministry of SMEs and Startups held an on-site meeting for social ventures at Heyground in Seongdong-gu, Seoul, and announced the results of the "2019 Social Venture Survey." This is the first time a survey on social ventures has been conducted.

Social ventures, identified based on innovation, growth potential, and social value, were counted at 998 companies as of the end of August last year. The number of domestic social ventures has steadily increased, with 601 in 2016, 724 in 2017, and 852 in 2018.

Among social venture representatives, 4 out of 10 were in their 20s to 30s (43.1%). This was followed by ▲40-49 years old (28.6%) ▲30-39 years old (28.1%) ▲50-59 years old (22.0%) ▲20-29 years old (15.0%) ▲60 years and older (6.3%).

Regarding business age, a significant majority (79.1%) of companies were within 7 years of establishment. Specifically, ▲1-3 years (29.4%) ▲over 7 years (20.9%) ▲3-5 years (18.9%) ▲less than 1 year (16.9%) ▲5-7 years (13.9%). The average business age was 4.5 years.

Employment creation was recorded at 8,860 employees across 771 analyzed companies (an average of 11.6 employees per company). In the past three years, new startups created employment for about one-third of the total workforce, 3,548 people. Social ventures showed a high employment rate of women (49.4%) and vulnerable groups (38%), significantly contributing to the employment of vulnerable populations.

By industry, technology-based sectors accounted for 80.5%, making up the majority.

Half (51.4%) of all responding companies have R&D organizations and personnel, and the intellectual property rights rate is 65.9%, indicating that they pursue both technological performance and innovation.

Park Young-sun, Minister of SMEs and Startups, said, "This social venture survey is the first conducted with a sufficient sample size, and through the survey, it was confirmed that social ventures pursuing social value are also contributing to sustainable job creation through innovative technology. Based on the survey results, we will strive to develop more sophisticated support policies and actively foster social ventures."

This content was produced with the assistance of AI translation services.