기존 경제 질서 하에서의 지역중소기업 경쟁력 제고방안 = A Study on Plans to Raise Competitiveness of Regional SMEs in Existing Economic Order

다국어 초록 (Multilingual Abstract)

As of 2014 the small and medium-sized enterprises (SMEs) comprise 99% of the firms and 88% of the nation’s employment. The continuation of nation’s economic growth can be achieved when local SMEs are strong, reflecting characteristics of local economies. In the past, SMEs also played an important role in economic growth and employment as conglomerates did. But, since 2000’s, SMEs have continuously shrunk in their size and role, compared to big business groups’ ones. The SMEs have confronted unfair competition with large firms and squeezed low margins in subcontract relationship. The imbalance and polarization between SMEs and big business groups are not yet improved and even deteriorated so far.
This study covers small and medium-sized manufacturing firms in Gyeongbuk province and compares SMEs with conglomerates. The study analyzes structural factors that inhibit the competitiveness of local SMEs in existing economic order and suggests several plans that can enhance their competitiveness. First, local SMEs should focus on developing its own distinctive and unique technology models. Second, local SMEs should make efforts to reduce monopolistic power of large-scale enterprises and should strengthen the cooperative win-win system between conglomerates and SMEs. Third, local SMEs should take advantage of a cooperative organization to overcome the lack of bargaining power and technology development. Finally, government and policymakers should foster local SMEs in the form of ‘local production for local consumption’ utilizing regional characteristics.
The SMEs should make every efforts to survive in highly competitive economic environment by developing creative technology as well as utilizing SME’s cooperative association to enhance a bargaining power. The government should guarantee fair competition with conglomerates and act as a fair judge to foster the SMEs under unfair subcontract relationships.

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