Reducing Poverty through Job Creation
. 2000-2015
. 189 Countries
. 8 goals and 21 targets
. 2016-2030
. 193 Countries
. 17 goals and 169 targets
8.3
Promote development-oriented policies that support productive activities, decent j
ob creation, entrepreneurship, creativity and innovation, and encourage the forma
lization and growth of micro-, small- and medium-sized enterprises, including thro
ugh access to financial services
“Poverty eradication is only possible
through stable and well-paid jobs”
The Power of Small: Small Businesses Making the Missing Link
Definition
Definitions of SMEs often vary by country and are usually
based on:
number of employees, the annual turnover or the value of
assets of enterprises.
Typically, microenterprises are defined as enterprises with up
to 10 employees, small enterprises as those that have 10 to 100
employees, and medium-sized enterprises as those with 100 to
250 employees.
Micro Small and Medium Enterprises
Generate Income
Woman Employment
Human Development
Quality of Life
MSMEs in South Korea
` 2008 2009 2010 2011 2012
No. of Fir
ms
Total 3,046,958 3,069,400 3,125,457 3,234,687 3,354,320
SMEs 3,044,169 3,066,484 3,122,332 3,231,634 3,351,404
Ratio (99.9) (99.9) (99.9) (99.9) (99.9)
No. of Em
ployees
Total 13,070,424 13,398,497 14,135,234 14,534,230 14,891,162
SMEs 11,467,713 11,751,022 12,262,535 12,626,746 13,059,372
Ratio (87.7) (87.7) (86.8) (86.9) (87.7)
<Yearly Trends of SMEs>
Source: Statistic Korea
(Unit: No. of Firms and Persons and %)
Trend of Unemployment Rate Unit: Year-on-year rate ※National Statistical Office
youth-unemploym
ent rate
unemployment rate
11/2015 12/2015 01/2016 02/2016
(unemployment rate, %)
All ages
15-29 years old
Note: Before 1999, the cycle of asking whether they found job or not was ‘1 week’ Data: Economic Activity Census
Comparing a monthly average income per worker
(unit: 10,000 won) Data: Korea Federation of Small and Medium Business
SMEs
Big Companies
Data: National Statistical Office
Jobs that the youth prefers (13-29 years old) (unit: %)
National Organization
Public Enterprise Big Companies SMEs
Reasons for avoiding getting job in SMEs
(unit: %)
Low average income
Employment instability
Low reputation of those around
Root of our Future Development!
Small and medium-sized enterprises and decent and productive employment creation, ILO Report, 2014 J. de Kok et al. Do SMEs create more and better jobs?, Brussels, 2011. C. Criscuolo, P.N. Gal and C. Menon: The dynamics of employment growth: New evidence from 18 countries, OECD Science, Technology and Industry Policy Papers, 2014. R. Decker: The role of entrepreneurship in US job creation and economic dynamism, Journal of Economic Perspectives, 2014. C. Pagés (ed.): The age of productivity: Transforming economies from the bottom up (Inter-American Development Bank, 2010. M. Ayyagari, T. Beck and A. Demirgüç-Kunt: Small & medium enterprises across the globe: A new database, World Bank Policy Research Working Paper 3127 (Washington, DC, 2003). Entrepreneurial Finance Lab Research Initiative: The missing middle, Harvard Kennedy School, 2014. L. Klapper, I. Love and D. Randall: New firm regisbusiness cycle, World Bank Policy Research Working Paper, 2014.