This study investigates the relationship between the ratio of SMEs and the economic performances such as industrial growth and employment growth using Korean 30 industries during 1992~2009. The ratio of SMEs based on the number of firms has maintained...
This study investigates the relationship between the ratio of SMEs and the economic performances such as industrial growth and employment growth using Korean 30 industries during 1992~2009. The ratio of SMEs based on the number of firms has maintained about 99% since 1990s. And SME ratio based on the number of employees has also increased by about 80%. However, according to our empirical results, there is no sufficient evidence that the relationship between the SME ratio and economics performances is significantly positive. On the contrary to this, our empirical results provide that the ratio of small business having less than 20 or 50 employees is positively correlated with economic performances, significantly. Therefore, our analyses imply that the policy maker focuses on the small business for efficiency and supports innovation in the medium sized business aspects to the industrial growth and job creation.