With the diversification of economy industrial structure, coordinative and complementary cooperations among specific industries are essential elements to the economic progress of the nation. Therefore, it is crucial to establish cooperation and close ...
With the diversification of economy industrial structure, coordinative and complementary cooperations among specific industries are essential elements to the economic progress of the nation. Therefore, it is crucial to establish cooperation and close relationships between small businesss and large business by the active promotion of a subcontract system. This subcontract system will help small, business to survive and formulate a vital force to build up international competitive edge.
But during the past years, an extra emphasis was placed on the large enterprises in terms of capital investment and technology development. Consequently, the economy of Korea has to be faced the problem of a industrial structure. The policy of fair transaction and promotion of a subcontract system are faced to a obstacles. Korea has to restructure its economy system and solve unfavorable relationship between small business and large enterprises.
For this reason, our studies and researches have to be focused on the present status of small business systematization and fair transaction. The main contents are as follows.
1. The meanings and types of small business systematization
2. The economic effect of small business systematization.
3. The present status of small business systematization
4. The suggesion of promotion for small business systematization
We can obtain benefits of the subcontract system by the total effort of various related factors. In addition, the systematic approach of the subcontract system should be considered as the way of horizontal relationship not vertical integration.
To conclude this study, several recommendations are given for guiding references as follows :
1. Improvement of subcontracting transaction
2. Maintaining the full-time operation and inducement of producing the special items.
3. Improvement of financial assistance
4. Improvement of loan system for small business
5. Reduction for payment period of credit transaction
6. Industrialization for export-oriented small business products
7. Establishment of subcontract supporting organization
8. Protection of small business province
If these suggesions would be realized, small business systematization in Korea was managed without a hitch.
Because the improvement of mall business systematization are accomplished by the relationship between mother enterprises and order receiving firms, there should be mutual understandings and constant effort.