The Ministry of SMEs and Startups will select 10 dedicated management agencies for small businesses in metropolitan local governments by 2027 and promote small business development projects that reflect regional characteristics.
Additionally, it will uncover and designate 20 more clusters where small businesses congregate, gradually expanding the infrastructure facilities that support small businesses, namely the small business specialized support centers.
Minister Oh Youngju held the 11th "Small Business Questions and Answers Policy Council" on the 18th at the Printing Culture Hub Center in Goyang, Gyeonggi Province (Small Business Specialized Support Center) and announced a "comprehensive three-year plan for small businesses" centered on these contents.
As of 2022, small businesses account for 560,000 enterprises and 1.28 million jobs, representing 88.9% of all manufacturing enterprises and 25.7% of jobs.
By industry, they are widely distributed from root industries such as metal processing and machinery equipment to consumer goods industries such as groceries and clothing/accessories.
The Ministry of SMEs and Startups has released the comprehensive three-year plan for small businesses two years ahead of schedule to proactively respond to the accelerating changes in the manufacturing environment and to address the difficulties on-site.
First, the government plans to nurture small businesses centered on local dedicated management agencies for small businesses, and from next year, it will support excellent projects for three years in areas such as market development, smart manufacturing, and improvement of the working environment.
Small business clusters will be categorized into three types: ▲ production-based ▲ tourism resource-based ▲ commercial district residential-type, and customized support will be provided accordingly.
Production-based clusters established around manufacturing production bases such as industrial complexes will be promoted as regional production bases through support for industrial infrastructure such as the establishment of complex support centers for small businesses and innovation support centers for industrial complexes.
Clusters that can be tourist attractions, such as local specialties, will be exhibited as experience and themed tourist attractions in connection with regional tourism development projects, and as commercial district residential-type clusters become revitalized, measures will be considered and implemented to include legal grounds within the small business law, such as the enactment of local government ordinances by local governments to prevent gentrification within commercial districts.
Furthermore, the three major management burdens that small businesses face—finance, manpower, and working environment—will be alleviated. The scale of accounts receivable factoring will be expanded to allow small businesses to quickly convert their delivery payments into cash, and financial support will be strengthened, including the establishment of private contract performance guarantee products that allow for compensation for uncollected delivery payments in cooperation with the private sector.
To solve the labor shortage, support will be provided for hiring the middle-aged and elderly as well as foreign workers, and technical personnel will be cultivated through apprenticeship training institutions, while expanding related education and support for facilities and equipment to create a safe working environment.
We will discover and brand excellent products with craftsmanship and rarity as "star small businesses" and introduce a program to support and manage all stages from strategy to sales. Support will also be given to small businesses through the expansion of online direct transactions and the operation of dedicated sales venues.
Minister Oh said, "I will ensure that this comprehensive three-year plan for small businesses is well established and executed on-site, and I will continue to strengthen policy support so that small businesses can become key drivers of the manufacturing industry and local economies, as well as grow into small enterprises."