Small and Medium Enterprises (hereafter called SMEs) in Korea occupy a high ratio in the national economy and play an important role economically and socially. This is not something that applies to our country only, but it is similar to developed coun...
Small and Medium Enterprises (hereafter called SMEs) in Korea occupy a high ratio in the national economy and play an important role economically and socially. This is not something that applies to our country only, but it is similar to developed counties. SMEs play an important role in industrial production in particular, and economic growth in general in less developed, developing, and transitional economies worldwide. They have generally provided the bulk of en-trepreneurs and employment in these economies, and the necessary foundations for sustained economic growth and rising incomes. So in most counties, the role and importance of SMEs as contributors to the national econo-my and community development, main agents of technical innovation, and job creators in the era of so-called jobless growth is being emphasized. Also policies have been generated across economies to further develop and strengthen the SME sector in developed counties. The SME policies and programs are in many quarters and vary according to country ex-periences and necessity, and generally address improvement of exports, market development, furthering the use of skill and credit access. Thus, this study is intended to present the desirable SME policy directions that could positively cope with the economic environment change by comparing the SME policy trends of developed countries. Looking at the common change in the SME policy in surveyed countries, different policy operations had been formed in the past such as unfair business connections between large and SMEs, application of market economy, etc. However, in recent years, these countries are magnifying the importance of SMEs, by positioning the SME policy at the heart of economy policies. According to the change in the policy of SME in developed counties such as Japan, the amendment of 「SME Basic Law」 in 1999, by diverting the SME policy ideas, goals and means, reestablished the direction and ideal conception from the past`s `protection and promotion` to present`s `promotion and competition` and adopted `Promotion of SMEs` as an alternative to overcome the prolonged economic recession. In case of the US, based on the open competition private enterprise, open competition and guarantee of equitable economy were assured. Through the 「SME Agenda」, the President announced that SMEs are the heart of the US economy and encouraged federal offices to improve the conditions of growth and foundation of the SME by relieving the tax burden and ameliorating business conditions. ED and main member countries also recognized the importance of SMEs by announcing `Lisbon Agenda` in 2000, enacted the 「Small Business Act for Europe」 by targeting the continued growth and competitiveness of SME under the principle of `Think. Small First` in 2008, and created the vision of Let`s make the highest environmental class for SMEs all over the world. As seen above, developed countries have recently emphasized the role of SMEs and tried to establish 5MB policy to cope with the change in the economic environment. These change provide policy implications to the SME policies of Korea with which are as follows: First, the 5MB is the heart of overcoming of the global economic crisis. In the case of U.S., since the launch of the Obama administration, they have been endeavoring to overcome the ongoing financial crisis and are looking for core solutions in SMEs to overcome the crisis. Second, for rationalization of the policy scope that is targeted at SMEs, the capital of SMEs that has rela-tively wide range of policies need to be narrowed so that appropriate size enterprises can foster themselves. Also Small and Micro Enterprises should have policies to secure the social safety-net by expanding the num-ber of the employment. Through these means, foster SMEs as an independent agents on one hand, and im-prove government finance and fairness of the policy through promoting Small and Micro Enterprises on the other hand. Third, the role of SMEs is the source of competitive reinforcement for relieving chronic unemployment and social integration. The EU is making an effort to improve the environment for the competitiveness and vigo-rous business activity by overcoming the continuous unemployment and social integration of the EU system. Fourth, SMEs play a major role in the local economy and in establishment of new businesses. In France, the role of SMEs is expanding as the core subject of the promotion of the country`s territory maintenance and local traditional industries. In addition, the UK recognizes SMEs as the driving force of starting new businesses, and Germany recognizes them as the subject of innovation and is making effort to support the policy according to their needs. As mentioned above, all the surveyed countries endeavor to use SMEs as key solutions to the social and economic problems. Therefore, it is time for our country to realize SMEs competitive strength through redefining the ideology, scope, principle agent, measure, etc. of the SMB policies reflecting in global change. To realize this, first a redefining of policy ideology of the SMB is required. The ideology of policy should be switched from `Protection and Promotion` oriented in the past to `Promotion and Competition` oriented which can adapt by themselves to the changing circumstances. Second, for rationalization of the policy scope that is targeted at SMEs, the capital of SMEs that has rela-tively wide range of policies need to be narrowed so that appropriate size enterprises can foster themselves. Also Small and Micro Enterprises should have policies to secure the social safety-net by expanding the num-ber of the employment. Through these means, foster SMEs as an independent agents on one hand, and im-prove government finance and fairness of the policy through promoting Small and Micro Enterprises on the other hand. Third, strengthening of government organization and policy operation is required at an appropriate level to the SMEs status. This mean, the establishment of a policy system based on SMEs viewpoint is required that is appropriate with the social and economic status of SMEs and the strengthening of the small business administration status is required to overcome policy operation limits as a vice-minister class organization. Fourth, selection and concentration must be firmed through change in policy measures for positive re-sponsiveness to economic environmental change. Through expansion of government finance and strengthening the soft support for SMEs to adapt to the economic environment change, SMEs make sure the competitive-ness and viability by themselves. This kind of support policy is prevalent to encourage the growth and devel- opment of SMEs around the world. We need to improve each of SMB policy and enhance research and investigation, etc., as well as above mentioned. Best of all, policy-makers and SMEs involved, all of the people should be required to the mind of love and recognition of the importance for SMEs in order to realize the SMB-oriented economic policy. And such efforts, if we keep it, is a way to guarantee continued growth and we will have a driving force national economy growth.