Small firms, source of entrepreneurship Small-and medium-sized
enterprises (SMEs) in Korea have made a remarkable contribution
to promoting industrial productivity and leading economic
growth. Small businesses and their entrepreneurship have been a
primary source in providing jobs and powering the economy.
Several characteristics and quality of SMEs in Korea is worth
our attention. First, they are both labor ― and technology-
intensive. In order to produce more with less input, they should
specialize in the utilization of one factor of production ―
either labor or technology. Many companies enter into new
markets where they can enjoy the advantage of labor- or
technology-intensiveness. Actually, it is the severe competition
with big businesses that forces them to be highly productive ― a
kind of survival of the fittest in the industrial eco-system.
SMEs can find their ecological habitat in either the relatively
high-labor intensive or high-tech industries. Second, there is a
closely-knit web of SMEs in Korea.