According to the results of the 2021 Small Business Survey, the number of small businesses nationwide is 4,117,000, and the number of employees is 7,205,000, and the number of businesses (786) and workers (1,337) in Seoul has decreased compared to the...
According to the results of the 2021 Small Business Survey, the number of small businesses nationwide is 4,117,000, and the number of employees is 7,205,000, and the number of businesses (786) and workers (1,337) in Seoul has decreased compared to the previous year. Most of the small business owners are industries closely related to the lives of local residents, and they are an important basis for the economy, and wholesale and retail businesses and food businesses with relatively low entry barriers enter the commercial sphere. If competition caused by store density in the commercial sphere or private consumption contracted due to economic deterioration, the closing rate of the commercial sphere could rise, leading to a slump in the job market and a high unemployment rate.
Therefore, the purpose of this study is to help new self-employed people by identifying factors that affect sales, which are the criteria for maintaining business in Seoul's alley and developmental commercial districts, evaluating the growth potential and performance of commercial districts and identifying trends in commercial districts.
The first difference in this study was that most previous studies selected four (development commercial districts, alley commercial districts, traditional markets, and special tourist zones) defined by Seoul, but this study only targeted development commercial districts and alley commercial districts composed of similar industries, except for traditional markets with the specificity of the market, and compared how the influencing factors on sales of the two commercial districts were different.
Second, previous studies have confirmed that commercial area and sales have a linear relationship in the study of influencing factors on commercial sales, but in this study, it is significant to check whether there is a nonlinear relationship between area and sales using a variable that squares the area, and to calculate the point where the change in sales is maximized due to the influence of the commercial area.
The results of this study showed that in terms of location characteristics, variables such as "development area (+)," "southeast area (+)," "number of bus stations (+)," "large-scale stores (+)," and "use areas" affect sales.
In terms of the characteristics of commercial districts, independent variables such as "commercial district area (+)", "square of commercial district area (-)", "static (+)", "franchise store ratio (+)", "food restaurant store ratio (+)", and "diversity index (+) by industry" affect sales in commercial districts.
As a result of examining it together with the commercial area area² variable, from 623,989㎡, an increase in area does not significantly increase sales. When the increase in the area of the commercial district reaches a certain limit, the magnitude of the positive (+) effect on the change in sales of the commercial district becomes the maximum, and the limit is the size of the commercial district that can generate maximum sales due to the area effect.
In terms of demand characteristics, the average monthly income of the resident population (+) affected sales. When only development businesses were analyzed, sales were affected by the northwestern region (-), the number of bus stops (+), the use area, the commercial area (+), the service store ratio (+), and the restaurant industry diversity index (+).
When analyzing only alley commercial areas, "Southeast (+)," "number of bus stops (+)," "large-scale stores (+)," "use areas," "right-of-use areas (+)," "franchise store ratio (+)," "restaurant store ratio (+)," "service store ratio (-)," "service industry diversity index (+)," "retail industry diversity index (+)," and "average monthly income (+) of the resident population" affected sales.
The limitation of this study is that individual commercial district data could not be obtained, so the commercial district was analyzed by unit rather than the characteristics of each store. Since the rent data used for the analysis is the average converted rent in the administrative building where the commercial district is located, it seems difficult to analyze the detailed commercial district, and the limitation of the study is that it does not take into account individual factors that can affect commercial district sales.
In addition, in terms of the diversity index, the diversity of industries in the large category of the restaurant industry was measured and analyzed by grouping Korean food and coffee into the same restaurant industry. According to Shin Woo-jin et al. (2010), the distribution patterns of similar and heterogeneous industries in the retail sector were analyzed to confirm that industries such as Korean food, tea houses, and beauty salons had an accumulation effect with other retail sectors, and Lee Jung-min (2021) analyzed the accumulation effect of restaurants and the marginal effect of density. As in previous studies, it will be a future task to consider the agglomeration effect and competition effect of industries not only with a single industry but also with other industries.
However, it is significant in that it compared the factors affecting the sales of development and alley commercial districts, analyzed the use area in more detail than previous studies, and analyzed the limit points in the relationship between commercial area and sales to confirm the nonlinear relationship between commercial area and sales.
Our village store commercial district analysis service provided by the Seoul Metropolitan Government referred to in this study provides analysis reports on administrative dongs and commercial districts in Seoul, and if you select a specific region, you can check industry analysis, sales analysis, population analysis, and regional analysis. Through the results of this study, it is expected that the factors influencing sales, one of the key factors when starting a business, can be identified to help prospective start-ups and be used for more detailed commercial area analysis services.