SEOUL, Jan.19 (Korea Bizwire) – Small and medium-sized enterprises (SMEs) that were recipients of the government’s R&D support programs turned out to have higher sales growth rates and more employees than those not receiving any government support.
The Small and Medium Business Administration (SMBA) conducted an investigation into 10,831 SMEs that participated in the government’s R&D support programs between 2010 and 2014, and 15,000 SMEs that didn’t receive any support. After comparing the results, the researchers found that businesses supported by the government programs had higher growth rates, were more profitable, and more innovative.
The SMEs that were supported by R&D funds showed 39.3 percent growth in sales five years after being supported. This was 15.2 percent point higher than the businesses that did not receive support, which showed 24.1 percent sales growth.
The number of employees at businesses supported by the government increased by 15.8 percent after five years, while those who were not supported cut staff by 5.8 percent.
The SMBA explained that the businesses supported by the government showed better results in indexes related to growth as well, and the gross profit on sales showed noticeable growth five years later.
The R&D Growth index, which tracks business innovation, also turned out to grow 20 percent point higher for supported businesses compared to companies that did not benefit from government funds supporting R&D.
SMBA officials commented that statistics have proven that government support for R&D is an effective way to increase sales and employment for small and medium-sized businesses. They plan to establish more programs to support R&D at SMEs.
By M.H.Lee (email@example.com)