ABSTRACT
Although big business (e.g. the chaebol groups) is generally seen as the base of the ‘Korean miracle’ of economic development, small and medium enterprises (SMEs) have played an instrumental role in the growth of the South Korean economy. After being largely invisible throughout the 1970s, SMEs, defined as enterprises employing fewer than 300 personnel, have emerged as the primary source of the country’s new employment since the 1980s. By 2004, SMEs contributed 86.5 per cent of South Korea’s total employment (Small Business Corporation, 2006). Today, the business community and the policy makers in Korea have recognised the importance of SMEs and entrepreneurial activity not only to job creation but to overall national competitiveness as they stimulate research and development, increase exports and create wealth.
