"7 out of 10 SMEs Decide Business Structure Transformation Independently"

A One-Stop Support System for Business, Labor, and Digital Transformation Needed from the Structural Transition Pathway Setting Stage

[Asia Economy Reporter Kim Cheol-hyun] Seven out of ten small and medium-sized venture enterprises (SMVEs) in South Korea independently decide on business structural transformation, indicating the need for systematic and comprehensive policy support through diagnosis and consulting from the stage of setting structural transformation pathways.

On the 7th, the Small and Medium Business Corporation (Chairman Kim Hak-do, hereafter KOSME) announced this in the publication of 'KOSME Issue Focus,' which analyzed the results of the survey on SMVEs' responses to business structural transformation.

Following the acceleration of industrial structural changes such as low carbon and digitalization after COVID-19, most respondent companies (85.4%) felt the necessity of business structural transformation. However, only 26.9% responded that they were "proceeding according to an established plan," while more than half (52.2%) were "in the process of preparing a plan."

The level of preparedness for business structural transformation varied by region and export status. Domestic companies showed relatively less readiness compared to export companies, and non-metropolitan companies were less prepared than metropolitan companies, indicating the need to strengthen policy support for vulnerable sectors such as traditional manufacturing industries in local areas.

As measures for responding to business structural transformation, respondents answered new business entry (48.3%), job transition and competency enhancement for current employees (22.3%), hiring personnel in new industry sectors (14.3%), and building digital infrastructure (10.5%). Based on these demands, a one-stop support system capable of comprehensively supporting business, digital, and labor transitions for small businesses was found to be necessary.

Additionally, more than half of the respondent companies (66.3%) cited lack of funds and professional personnel (66.3%) as the biggest difficulties in responding to business structural transformation. The most needed government policies were policy funds (64.5%), one-stop support through integrated centers (11.6%), and technology development (6.6%), in that order.

KOSME proposed policy support measures for SMVEs' structural transformation based on the survey results: ▲ activating proactive structural transformation through diagnosis targeting vulnerable sectors where voluntary transformation is difficult ▲ providing customized consulting support for establishing structural transformation plans and execution methods ▲ preparing mid- to long-term response plans through proactive business and job transitions and digital and process improvements according to the urgency of structural transformation by industry ▲ establishing an integrated system that supports corporate business transitions, labor transitions for workers, and regional new industry development in a one-stop manner.

Chairman Kim Hak-do stated, "Through the Issue Focus, we were able to recognize that SMVEs are aware of the necessity of business structural transformation amid the major transition to a low-carbon and digital economy and understand the difficulties they face. KOSME will focus on promoting structural innovation support and carbon-neutral ecosystem creation projects this year to support SMVEs to become the main actors in economic structural transformation."

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