Seoul City Launches 'Lifecycle-Based' Support for Small Business Owners... Customized Assistance from Startup to Closure Stages

Customized Support for All Stages: Entry Stage (Startup Preparation) → Growth Stage (Management Improvement) → Rechallenge Stage (Business Closure)
Next Month, Additional Recruitment of 220 Small Businesses for Facility Improvement Cost Support, Up to 1 Million KRW per Business

[Asia Economy Reporter Lim Cheol-young] Customized support tailored to each stage of the business lifecycle, from startup preparation to closure support, will be strengthened for small business owners. Prospective entrepreneurs will receive more thorough consulting and systematic education to help them start their businesses without failure, while small business owners striving to overcome crises will be provided not only with facility improvement funds but also with management strategies to enhance their competitiveness. Additionally, small business owners who are inevitably closing their businesses due to economic downturns and sales declines will be offered various opportunities and stepping stones for a fresh start.

On the 15th, Seoul City announced that, given the urgent need for rapid support for small business owners preparing to start or close businesses amid the prolonged COVID-19 pandemic, it plans to steadily provide lifecycle support from the entry stage (startup) to the growth stage (management improvement) and the re-challenge stage (business closure).

The 'entry stage' supporting prospective entrepreneurs aims to minimize the possibility of failure through well-prepared startups. Comprehensive support is provided, including startup consultations, education, consulting, mentoring, and funding, to build a solid foundation. Any citizen wishing to start a business can receive support, and all processes are free of charge. Support includes basic startup-related consultations, business plan development, commercial area analysis consulting, and practical training for industry-specific startups. Additionally, mentoring from successful senior small business owners and funding necessary for startups of up to 50 million KRW are provided after completing startup consulting.

Starting in July, the ‘Sangkwon Innovation Academy,’ which offers differentiated practical and experience-centered startup education, will be operated in Seongsu-dong. It plans to assist 10 companies (20 people) this year and support the startups of 100 companies over the next five years.

The growth stage focuses on customized management improvement support. The management and operational status of small business owners are thoroughly analyzed to provide tailored consulting, and funds needed for facility improvements are also supported. Consulting is conducted up to three times per company, covering customer management and marketing consulting, product and service development tailored to industry characteristics, and specialized consulting in tax, legal, and labor fields. Seoul City also supports facility improvement costs such as signage, lighting, and wallpapering up to 1 million KRW per company and plans to recruit an additional 220 companies for support from July 1 to 31.

Furthermore, a self-employed collaboration project is underway to support joint facility installation costs (50 million KRW) or joint business expenses such as branding and marketing (20 million KRW) when three or more self-employed individuals collaborate to strengthen competitiveness. This project has completed the call for applications for 25 collaborative groups (75 companies) this year and is currently selecting support recipients, with plans to continue next year.

In addition, the re-challenge stage supports small business owners who are inevitably preparing to close their businesses to stabilize their business closure and enable a fresh start. Eligible recipients are store-type small business owners with more than six months of business experience who have closed or plan to close this year. Support includes guidance on necessary reporting for business closure, tax-saving methods, and assistance with employment or re-starting a business. Moreover, business closure costs such as rent and store restoration are supported up to 2 million KRW per company for 800 companies this year.

Meanwhile, the ‘Seoul City Self-Employment Support Center,’ which is in charge of lifecycle support for small business owners, is operated by delegation to the Seoul Credit Guarantee Foundation and has been providing comprehensive support including finance, startup, and management consultations to small business owners in the Seoul area since 2006. Seo Seong-man, Seoul City Labor and Livelihood Policy Officer, stated, “We will continue to provide ongoing support to fundamentally resolve the management issues faced by small business owners struggling due to the prolonged COVID-19 pandemic and to strengthen their self-sustainability so they can overcome the crisis.”

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