Lots of venture start-ups popped up when the foreign exchange crisis occurred in 1978. However, many were soon shut down, confirming the bubble theory. The 2008 global financial crisis discouraged creating businesses even more. Now, as the global economy struggles due to the European fiscal crisis, youth unemployment in Korea is becoming more serious.
Under such circumstances, many younger people are turning their attention to creating a business as an alternative to the slimmer chance of finding a job. As a result, much attention is being paid to a government institution which encourages and supports young future CEOs; this is the Korea Institute of Startup and Entrepreneurship Development (KISED), subordinate to the Small and Medium Business Administration (SMBA).
This year, KISED has concentrated on fostering technology venture startups, supporting the commercialization of innovative ideas, and designating more universities as “Leader University in Creating Businesses.” In particular, by supporting one-person startups, KISED tries to raise world-class mobile application developers.
Unlike micro startups for family’s living, technology startups create new opportunities and have the potential for consistency and sustainability. Believing that technology startups form the bedrock of the global economy, the Korean government provides more supports to them. One good example is KISED helping tenants of business creating centers in 286 universities nationwide.
To promote entrepreneurship, KISED provides educational services to every age group in every sector through its startup infrastructure. This public incubator also tries to expand the base of venture startups through supporting so-called BizSchools for teenagers, college student business clubs, providing lectures on creating businesses, as well as providing technology startup packages. Such endeavors have led to some notable achievements. For example, following great responses from students regarding the lectures on creating a business, many universities have recently added them to their regular courses.
Among the above-mentioned supporting programs, only one is for teenagers; the BizSchool supporting program. This aims to identify and raise youngsters who have potential for entrepreneurship. It started with designating the nationwide 130 elementary, middle and high schools as BizSchools early this year. They are expected to prepare many youngsters as future CEOs through promotion of entrepreneurship.
This year, the “Youth Startup Festivals,” hosted by SMBA and KISED, supported by the Korea Entrepreneurship Foundation (KEF), and organized by the startup support group Leader Universities in Creating Businesses, have been proceeding from spring to the end of November. Composed of 40 festivals, they play a positive role in promoting an atmosphere for creating businesses in campuses.
Local governments are also expanding the incubator projects. Most elected local government officials are eager to make good on their campaign promises to support social companies and youth and senior startups. However, hyper-active government projects are causing some confusion, such as duplicated budgeting. In this regard, the President of KISED Beck Du-ock said, “We need a kind of control tower that regulates public incubator projects in order to maximize the synergy effect. It is also important to connect community and campus projects.” He mentioned the so-called “Chamsari (True Living) Training Center,” a job training center for wellbeing, as an example.
In conjunction with the Korea Venture Business Association (KOVA), KISED is to co-organize “Venture Startup Festival 2012,” which will be held in Seoul KOEX from October 29.
They have invited many innovative venture startups from around the world in a bid to create an atmosphere optimal for creating businesses. Guests will talk about the secrets of their success, as well as discuss sustainable growth with domestic experts.
In addition, KISED will hold the final of “Superstar V,” nicknamed “the best among the best,” which will feature numerous national creative startups. The event will also provide information regarding the process of creating a business, how to write a business plan, funding for business, and other basics for startups.