70% of business scholars “Korean entrepreneurship is lower than that of advanced countries”

Provided by the National Federation of Entrepreneurs

A survey found that 6 out of 10 business scholars view Korea’s business environment as worse than that of advanced countries. Entrepreneurship was also evaluated to be lower than that of developed countries.

According to the results of a survey conducted by the Federation of Korean Industries on the 21st on ‘corporate management environment and entrepreneurship’ among 175 members of the Korean Business Association, 62.3% of respondents said that the domestic business environment was ‘very bad’ (10.3%) or ‘very bad’ (10.3%) compared to advanced countries. It was evaluated as ‘bad’ (52.0%). As the reason why the business environment lags behind developed countries (multiple responses possible), they cited corporate regulatory burden (39.4%), increased employment costs (31.7%), and trade-related uncertainty (12.8%). As policies that the next government should pursue to improve the business environment, they cited corporate deregulation (34.0%), corporate employment flexibility (26.0%), and support for overseas market development and customer diversification (14.0%).

In the current business environment, reorganization of the global supply chain (30.3%), acceleration of digital transformation (29.7%), ESG (environmental, social and governance) management (21.7%), and changes in consumption trends (17.7%) were mentioned as major issues. Creativity and innovation (40.6%), ability to cope with crisis (29.7%), and a sense of challenge (12.0%) were selected as the entrepreneurial spirit most needed in the business environment. As the global supply chain is reorganized and digital transformation is accelerated, the ability to cope with crisis situations and the innovative thinking of management have become more important, the FKI analyzed. As Korea’s leading entrepreneurs who demonstrated creativity and innovation, 34.3% chose Chung Ju-young, honorary chairman of Hyundai Group, 21.1%, Samsung Electronics Chairman Lee Kun-hee, and 17.1%, Samsung Group founder Lee Byung-cheol.

A representative entrepreneur who demonstrated entrepreneurial spirit.  Provided by the National Federation of Entrepreneurs

A representative entrepreneur who demonstrated entrepreneurial spirit. Provided by the National Federation of Entrepreneurs

Provided by the National Federation of Entrepreneurs

Provided by the National Federation of Entrepreneurs

70.3% of respondents expressed the opinion that the level of entrepreneurship in Korea is lower than that of developed countries. The most common reason for this was the social climate that does not tolerate failure (23.2%). It was followed by negative perceptions of entrepreneurs and entrepreneurs (17.1%), and preference for stable jobs among young people (15.0%).

The level of entrepreneurship also gradually decreased, and the evaluation of entrepreneurship by era (out of 10) was 6.3 points before the 1970s, 6.3 points in the 1980s, 6.1 points in the 1990s, 5.7 points in the 2000s, and 5.3 points in the 2010s. Scholars believe that creating an environment conducive to entrepreneurship is to create a positive perception of entrepreneurs (24.0%), to provide and support opportunities for re-challenge after business failures (20.9%), and to ease regulations restricting business activities (20.3%). said it was necessary.

Yu Hwan-ik, head of corporate policy at the FKI, said, “We need to improve entrepreneurship by improving the perception of entrepreneurs, and create a conducive environment for management through deregulation and flexible employment.”

Reference-www.khan.co.kr

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