59.7% of Small Businesses and Small Merchants Say "Legal, Tax, and Labor Expertise Needed"

Korea Federation of SMEs 'Survey on Difficulties in Specialized Knowledge Areas' Results

Source=Korea Federation of SMEs

[Asia Economy Reporter Kim Daeseop] More than half of small businesses and small merchants feel the need for specialized knowledge in areas such as legal, tax, and labor management when running their businesses.

According to the Korea Federation of Small and Medium Business (Kbiz) on the 10th, the results of the "Survey on Difficulties in Specialized Knowledge Areas for Small Businesses and Small Merchants" showed that 59.7% responded that "specialized knowledge in legal, tax, labor, etc. is necessary when managing a business." The level of in-house capability to respond to issues requiring specialized knowledge was reported as insufficient by 36.7% of respondents.

The most needed support included "expansion of free consultation opportunities with experts" (30.3%), "provision of consultation case examples by field" (29.3%), and "provision of expert information" (13.3%). It was found that free consultation opportunities and systematic support for consultation cases in specialized knowledge areas are necessary.

Additionally, 76% of businesses reported having "no personnel with specialized knowledge at all." When problems requiring specialized knowledge arose, 72.3% responded that they "utilize external experts to cope," indicating a lack of internal personnel capable of handling such issues and a reliance on external experts.

In particular, 21.3% of small businesses and small merchants experienced unfair treatment or damage due to legal, tax, or labor issues in the past five years. Types of damage (multiple responses allowed) included "financial loss" (79.7%) and "mental distress" (70.3%). The most common reason for resolving problems independently without external expert help was "cost reduction" (46.3%).

This survey was conducted from the 1st to the 6th of this month targeting 300 small businesses and small merchants subscribed to the Yellow Umbrella.

Park Yongman, head of the Kbiz Mutual Aid Business Group, stated, "Small businesses and small merchants need a systematic free consultation support system for specialized fields where cost and information barriers are high," adding, "We will strive to ensure that the Small Business and Small Merchant Management Support Group operated by the federation can perform this role well."