Today we live in a world of infinite competition. Korea accomplished remarkable economic growth during the last three decades. But lately many small businesses have been bankrupted under IMF system. Besides the development of the information communica...
Today we live in a world of infinite competition. Korea accomplished remarkable economic growth during the last three decades. But lately many small businesses have been bankrupted under IMF system. Besides the development of the information communication revolution coupled with the World Trade Organization regime, has gradually lowered the artificial and institutional barriers between countries. The most important object of korean industrial policy at present is to readjust and restrict the industrial structure within the limits of domestic resource endowments.
Facing the changing international economic system, we must also solve the unfavorable relationship between small businesses and big businesses. Further more, in the age of technological competition, it is necessary to promote technological innovation is ever increasing.
The major concern in Korea has been the increasing concentration of economic power in the hands of a comparatively limited munber of Jae Bual. They have expanded their business disproportionately, extending their interests even into the areas where smaller firms could perform more efficiently. Thereby it has become inevitable for the goverment to adopt restrictive measures on disproportionate diversification of big businesses. Small businesses in Korea are confronted with outward inpediments such as the international economic unstability and lag of domestic economy as well as inward structual fragilities such as lack of ability to ensure capital and backwardness of facilities.
Natwithstanding the above problems, small businesses play a profoundly important role in the national economy in the areas of employment opportunity, balanced regional development, technology innovation and cooperation among different industries. Therefore in order to ensure the sound development of small businesses, new phase of small business policy should be made through the enactment of legislation of small businesses.
Beginning with Small Business Coopertives Act enacted in 1961, legislation of small business including Small Business Basic Act, Small and Medium Industry Bank Act, Small Business Activity Adjustment Act, Small Business Subcontract Acceleration Act and Small Business Promotion Act and so on have been made thereafter. As a main body of study, this thesis systemizes legislation of small businesses and reviews them to present new suggestions which solve the sudden problems of small businesses as well as future development of them.
This thesis is composed of V chapters.
(1) In chapter I it deals with the actual situation of small businesses in Korea and then points out the problems involved in them.
(2) In chapter Ⅱ it deals with the present condition and definition of small business, then laws relating to small business and general theories of small business.
(3) In chapter Ⅲ it deals with problems relating to small businesses in Kwang Ju and Jun Nam region.
(4) In Chapter Ⅳ it deals with the competitive power method of small businesses and promotion of their power, especially for Kwang Ju and Jun Nam regional small business.
(5) Chapter V is the conclusion.
The competitive power of small small businesses lag far behind that of large businesses due to small scale of business, lack of ability to secure capital and lower level of business management and technical know-how. Therefore wide range of legislation work should be promptly conducted by the government to lead small business on a normal track.