Jungjingong Strengthens Data-Driven Support for Re-Entrepreneurship

Data Collection and Analysis for Re-Entrepreneurship Focused on Sincere Management Evaluation

The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 18th that it will strengthen the integrated support system for re-startups based on data. The plan is to collect re-startup demand information centered on the sincere management evaluation, systematically collect and analyze data, and implement re-startup support policies.

Introduced in 2016, the sincere management evaluation system assesses whether a business has been managed faithfully without engaging in accounting fraud, intentional bankruptcy, unfair dismissal, etc., before re-startup. This system is used to select recipients of financial support and has been exclusively managed by SBC since last year.

The sincere management evaluation has been utilized mainly in re-startup support projects under the Ministry of SMEs and Startups, including SBC, the Korea Institute of Startup & Entrepreneurship Development, the Korea Credit Guarantee Fund, and the Korea Technology Finance Corporation. However, starting this year, it is being expanded to local governments such as Gyeonggi Province and the Gyeonggi-do Economic Science Promotion Agency, Gwangju City, and Gwangju Technopark to discover sincere re-entrepreneurs and strengthen support systems on a pan-government level.

Furthermore, as re-startup support demand converges at SBC, a survey system and an online continuous consultation system will be introduced this year to reflect the diverse needs of re-entrepreneurs in policies. The data collected through these systems will be meticulously analyzed and provided as re-startup support services that users can tangibly experience.

Meanwhile, an analysis of data from 824 companies supported by SBC for re-startup over the past three years revealed that the main reasons for small business closures were ▲disasters and sudden economic crises (18.4%) ▲deterioration of accounts receivable (16.7%) ▲limitations in financing (15.9%) ▲limitations in business feasibility and marketability of main products (11.3%) ▲sales and marketing issues (11.3%), in that order.

The biggest difficulty when pursuing re-startup was 'lack of own funds and limitations in financing,' accounting for 45.0%, followed by ▲low credit due to past failures (34.5%) ▲lack of confidence in re-startup success (6.1%).

The motivation to overcome the pain of failure and start a business again was 'to identify past failure factors and re-challenge in the same or similar industry,' accounting for 63.8%. This means that more than half of re-entrepreneurs restart in industries with continuity.

Kim Moon-hwan, Head of the Innovation Growth Headquarters at SBC, said, "We will link re-startup support projects such as policy funds to re-entrepreneurs who have technological and business feasibility to resolve the biggest difficulties of financing and low credit and create a virtuous cycle ecosystem for re-challenge. We will take the lead in playing the role of the national re-challenge hub by establishing a re-challenge innovation platform to strengthen data-based re-startup support."

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