'Lack of Preparation for Non-Face-to-Face Technology and Services... Only 17.8% of Venture Companies Are "In Progress"'

Small and Medium Venture Business Corporation
Brief on On-site Survey of Small and Medium Venture Businesses

[Asia Economy Reporter Kim Daeseop] It has been found that 8 out of 10 venture companies recognize the need for contactless (untact) technology and service innovation. However, only about 2 out of 10 companies are currently preparing to respond to the untact economy, indicating an urgent need for government policy support.

According to the 'Small and Medium Venture Business Field Survey Brief' published by the Small and Medium Business Corporation on the 4th, 80.8% responded that 'technology and service innovation is necessary.' The responses were in the order of 'very necessary' (36.0%), 'necessary' (44.8%), 'don't know' (14.3%), and 'not necessary' (5.0%).

While the need for untact technology and service innovation was recognized, preparations were found to be insufficient. Only 17.8% answered that they are 'proceeding according to an established plan.' Plans to prepare within 2 to 3 years and 'none' each accounted for 23.3%. The response 'currently preparing a plan' was the highest at 34.5%.

Regarding difficulties in preparing and adopting untact technology and services, 47.0% cited 'lack of investment funds' as the biggest challenge. This was followed by 'uncertainty in demand creation market' (13.0%), 'lack of internal management strategy' (12.5%), and 'uncertainty of investment effectiveness' (12.0%).

As for government support measures needed to adopt untact technology and services, 'financial support' (57.8%), 'support for building in-house infrastructure' (13.0%), and 'support for building shared infrastructure for small and medium venture companies' (8.8%) were the most highly responded.

This survey was conducted from the 3rd to the 11th of last month targeting 1,560 venture-certified companies by the Small and Medium Business Corporation, with 400 companies participating and responding.

Additionally, the Small and Medium Business Corporation analyzed the employment status of companies utilizing untact technology from 2019 to the first half of 2020, targeting 3,928 venture-certified companies. Among the untact subfields, the 'logistics and distribution' sector showed an employment increase of more than 10% since March of this year, when the novel coronavirus disease (COVID-19) began to have a significant impact.

The 'smart healthcare' and 'foundational technology' sectors saw employment increases of 2.7% and 0.9%, respectively, since March this year. In contrast, the 'entertainment,' 'smart business and finance,' and 'consumer lifestyle' sectors experienced slight decreases in employment during the same period.

Kim Hakdo, Director of the Small and Medium Business Corporation, said, "I hope the Small and Medium Venture Business Field Survey Brief will help properly understand the untact economy and prepare countermeasures." He added, "The Small and Medium Business Corporation will actively support the innovation of untact technology and services in small and medium venture companies through various policy supports, including financial support for startups in the untact field and fostering specialized personnel in new industries such as artificial intelligence."

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