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.