GOOOD morning, my readers! Long time no see! Sorry for my absence over the past weeks. Now, I came back with a good news, so shall we begin?
As you know, there was presidential election in last December with Ms Park Geun-Hye being elected. Before being elected, she repeatedly underlined the importance of small and medium sized enterprises in our economy. This was represented by her visit to Korea Federation of Small and Medium Businesses (KBIZ), before she had visited the Federation of Korean Businesses (FKI). It was quite surprising schedule, which shows that Mr. Park prioritizes helping out SMEs on the policy agenda. So, it is not difficult to guess that the incoming government’s next move is to support SME, and eventually to boost the national economy.
So, before we begin, it is necessary to know how SMEs are financially challenged in our economy. The two graphs below clearly show SMEs’ deteriorating growth, which shows that neither sales nor shipment are taking favorable turns. SMEs make direct contributions to aggregate saving or investment in our economy, as well as they are involved with technological development. So, we should not underestimate the role of SMEs in our economy. Rather, we should come up with some countermeasures to support SMEs.
First, ‘Fast Track Program’ will be extended by the end of this year. This program is designed for the purpose of supporting SMEs facing temporary lack of funds. Given that SMEs find it harder and harder to apply for loans at commercial banks, this program is expected to supplement a large proportion of financial resources available for SMEs.
Moreover, when granting financial support for SMEs, the support will be given in much more specified manner. That is, SMEs are categorized under sizes, sectors, and regions. Closer and more detailed analysis will be carried out in order to provide more customized supports in need. With continuous financial support for SMEs, SMEs would find it a lot easier to access to financial resources. Eventually, they will be able to enhance their professionalism and to promote diversity across businesses.
This is for today’s post that I would like to share with you. Hope you enjoyed reading my post, and please don’t forget that I am always waiting for your valuable comments! See you next time!