The purpose of this study is to find out the derive the determinant factors of the success of enterprises in business incubator center and show the implication of such factors for policy making to improve the possibility of success for the enterprises...
The purpose of this study is to find out the derive the determinant factors of the success of enterprises in business incubator center and show the implication of such factors for policy making to improve the possibility of success for the enterprises in business incubator centers.
In this study, a survey was made on the enterprises graduated from the business incubator centers in Gyeonggi Province in the years of 2009 and 2010, and the enterprises occupying in those centers as of the end of 2010. The dependent variable, the performance index of the enterprises in business incubator centers, was measured with 'the revenue difference per the period of occupation' and 'the manpower difference per the period of occupation' for the graduated enterprises. In order to find out the problem of previous cross-sectional analyses, their performances were measured with 'the revenue of 2010' and 'the manpower as of the end of 2010' for the enterprises occupying in the centers as of the end of 2010. The independent variables that influenced on this were set with 'the entrepreneur's personal characteristics', 'regional characteristics' as environmental elements, and 'the characteristics of business incubator centers' in the aspect of internal resource. In addition, in order to make a comparison with previous studies, the analysis was made on the model with and without the variable of 'enterprise's operation period' for the enterprises that moved in at the end of 2010.
The result of the analysis showed 'the revenue difference per the period of occupation' had not significant relation with 'the regional characteristics' nor 'the characteristics of business incubator centers'. However, when analyzing after dividing into enterprises less than 3 years old and those more than 3 years old, the sales revenue of the entrepreneurs without business start-up experience was rather higher. In addition, when analyzing on the sales revenue status of the enterprises in the centers as of the end of 2010, various variables were influencing if 'enterprise's operation period‘ was not considered, but there was no factor except 'enterprise's operation period‘ that gave an significant impact if 'enterprise's operation period‘ was included in independent variables.
As for 'manpower' as another enterprise performance index, the analysis on the educated enterprises from business incubator centers showed that 'the manpower difference per the period of occupation' was influenced significantly by the entrepreneur's education level. When this was additionally analyzed with enterprise's operation period, the difference of manpower increase within a period showed high in the educational group higher than undergraduate level and less than master level for the enterprises with enterprise's business operation period less than three years, but for the enterprises with enterprise's business operation period more than three years it was high in the educational group higher than master level. In addition, it showed that, after the third year of enterprises, the less the age of entrepreneur at the time of start-up, the higher the manpower difference per the period of occupation. But in case analyzing on the manpower status of the enterprises occupying in business incubator centers as of the end of 2010, it showed, different from the analysis on graduated enterprises, 'the area of business center' and 'operational expense' as well as 'enterprise's operation period' had a significant positive relation.
Based on the above performance determinant factors of the enterprise in business incubator centers, several implications of such factors for policy making can be suggested for future business incubator center policies.
First, as for the locational condition of business incubator center, the result of this study showed that there were no significant relation among the sales revenue of the enterprises in business incubator centers, the performance in manpower and the locational condition of business incubator center. This means it could be better to break way from the policy of locating business incubator centers or vitalizing start-ups focussing on the capital area and major big cities in future.
Second, the analysis showed that the determinant factors for successful performance measured by sales revenue index and manpower index of the enterprises in business incubator centers were different each other. As for the government's policy to vitalize business start-ups, the policy for increasing the sales revenue of start-ups and the policy for increasing job creation should be separately driven.
Third, As for the annual assessment on the operational performance of business incubator centers conducted by the Small and Medium Business Administration and each local government, an assessment on enterprises occupying in the centers at certain point of time could make the performance caused by the enterprises' decision to locate themselves in a business incubator center be wrongly recognized as the performance of that business incubator center. Therefore, in consideration of the purpose of establishing business incubator center, it is required to check the status of sales revenue and manpower quantitatively every year to make an assessment on potentiality of growth and performance in long-term base rather than just short-term performance. It was also found that any assessment without considering the enterprise's operation period in the center could be made on the natural increase of the sales revenue and manpower according to the enterprise's operation period rather than by the enterprise's actual competence.