Since the start of the new millennium, the Korean economy has experienced slow growth, as well as a drop in employment elasticity with growth due to advancement of the industrial structure. This stunted growth has weakened job creation within existing firms, which has prompted corporate restructuring. Thus, the need for new start-ups to employ job seekers is now greater than ever, but the majority of today’s new start-ups are merely seeking to make ends meet such as restaurants required little advanced technology and modest amounts of capital. As a result, fewer start-ups can be created for substantial job creation.Such start-ups namely, those that are established simply to support one’s livelihood, are decreasing the overall quality of the start-up market, as they often close down soon after opening, offer low wages and limited numbers of jobs, and contribute little to overall job growth. A recent study suggests that half of the nation’s self-employed businesses founded within 10 years after 2002 either suspended operations or shut down entirely within three years, lasting a mere 3.4 years on average. Moreover, restaurants, bars, and small-scale retailers constituted the majority of new self-employed businesses. The businesses with the highest rates of suspension or closure were bars, nightlife establishments, information technology retailers, restaurants, lodging establishments, and clothing and accessory shops.In the present economy, many small businesses have shorter life spans, and are fundamentally limited in their ability to contribute to continuous job growth. Thus, the most important issue pertaining to job creation today is how to support the establishment of companies that require more advanced technology that will allow them to experience both stable and rapid growth over the long term.When evaluating the establishment of new businesses from a regional standpoint, strong regional growth requires several robust companies operating in that region. Cultivating this level of regional growth necessitates that support be made available to outside companies with innovative potential to establish local branches, as well as the promotion of local start-ups. This study focuses on the latter-promoting the establishment of start-ups with innovative potential in local regions to boost regional job creation and growth.In this respect, this study aims to help technology-based start-ups in the manufacturing or manufacturing-based service industries that utilize a certain level of advanced technology to enjoy regional growth
