Academic journal article Academy of Entrepreneurship Journal

The Current Status and Improvement Strategy of the Korean Start-Up Accelerators

Academic journal article Academy of Entrepreneurship Journal

The Current Status and Improvement Strategy of the Korean Start-Up Accelerators

Article excerpt

ABSTRACT

Since the mid-2000s, a new business-incubation system "start-up accelerator" has boomed up in the entrepreneur ecosystem in the United States. Introduced into Korea in 2010, the start-up accelerator is still on initial stage and is not broadly known throughout the land. In addition, preliminary founders of new ventures do not know whether there are such institutions or which accelerator is appropriate for their businesses. I hope that my small study on the start-up accelerator can help make a useful result for the development of domestic business ecosystem.

This research will provide the details of accelerators around the United States, the United Kingdom, Israel and Korea. For this study I had conducted the interview method with several start-up accelerators, and collected a number of articles from various media, magazines, and internet sites. By analyzing the information and research reports released by the national research institutes, I wanted to benchmark from the superiority of the foreign start-up accelerators and to propose some suggestions for the development of the Korean start-up accelerators. The results are summarized as follows.

First, by promoting the establishment of the private-led start-up accelerator, we can spread the practical experiences and entrepreneurial insights of the former business leaders to the promising founders who have a new business idea. Government should establish this kind of business environment for the enterprises through the official support policy to incubate the start -ups aggressively.

Second, the controversy on the effectiveness of the activities of the start-up accelerator is raised continuously. In order to verify this, it is necessary that the criteria for analyzing the effectiveness should be developed.

Third. to expand to the global market, we should induce the domestic start-up accelerator to have a partnerships with the foreign excellent accelerator and should foster the professional accelerators by each industry.

Fourth, Government should prepare the legal and institutional foundation for the start-up accelerators to be able to support and invest in the start-ups without any external constraints, and should also provide the tax benefits properly.

INTRODUCTION

Introduction And Issue Raising

The first Business Incubating Center in Korea was founded by the Small and Medium Business Corporation (SMBC) in 1983 at Ansan. According to the announcement by the Small Business Administration in 2010, in total 286 startup incubation centers were in operations. Most incubation centers are focusing on education and support programs for business start mainly toward manufacturing industry. With the development of ICT(Information and Communications Technologies) since late 2000s, a new form of business incubation and investment programs began to be demanded for the sectors surrounding service and software which carry different traits compared to existing manufacturing industry.

The startup accelerator has appeared since mid 2000s in overseas as a new support system for startup ecosystem. It has gained attention as the business model providing mentoring, training, networking, and seed money for the startups(Christiansen, 2009). In case of Korea, as still in the early stages, the start-up accelerators seems have difficulty to be activated by itself. Therefore the concrete policy serving for the activation of start-up accelerators is needed. By comparing and analyzing the current operating status of the start-up accelerators in and outside of Korea in this respect, I would like to seek the development direction of future policies for the accelerators.

Research Methodology

As research methods, I would like to investigate the operation status described at the preceding study articles about the accelerator or incubator in the United States, U.K. and Israel accompanied with looking into the operating status of around 20 accelerators active in Korea through the sources collected from lectures, interviews and written materials. …

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