[Square] A Strong Commitment for Women Entrepreneurs

Lee Jeong-han, President of the Korea Women Entrepreneurs Association

The COVID-19 pandemic continues. Although two years have passed, the pandemic shows no sign of ending, and the suffering of small business owners and self-employed individuals who have struggled to endure is worsening. In particular, women-owned businesses are at the center of pandemic damage. This is because women-owned businesses are concentrated in self-employment sectors with lower sales compared to general businesses. Women-owned businesses number 2.77 million, accounting for more than 40% of all companies in South Korea, but their sales amount to only 10%.

On the 21st, the government prepared an additional supplementary budget of 14 trillion won to support small business owners and small enterprises severely affected. Small business owners whose sales decreased due to strengthened quarantine measures will receive 3 million won each, and the support target has been expanded to include travel and accommodation industries, enabling 3.2 million small business owners and small enterprises to benefit. This is a very timely measure.

However, the reality for women-owned businesses remains difficult. Temporary subsidies alone cannot solve the difficulties faced by self-employed individuals. While the urgent issue our economy must overcome now is the COVID-19 crisis, in the long term, it can be said that solving low birth rates and creating jobs are key. These issues are closely related to women-owned businesses. As the representative of the Korea Women Entrepreneurs Association, which was launched in 1999 as the first statutory women’s economic organization, I would like to gather wisdom on the following.

First, I aim to contribute to increasing women’s labor market participation. In South Korea, the female employment rate rises until the 20s, then sharply decreases in the 30s, and recovers in the late 40s, forming an ‘M-shaped’ curve. Therefore, efforts to eliminate career interruptions are necessary. To increase women’s labor market participation, through the ‘Women’s Economic Research Institute,’ we will not only make government proposals but also contribute to strengthening the competitiveness of women-owned businesses and promoting startups at the ‘Women’s Business Comprehensive Support Center.’

Next, I will strive to build a ‘win-win platform’ for women-owned businesses. Through this, I plan to meticulously prepare to connect 2.77 million women-owned businesses to maximize their strengths. By developing this place into a large marketplace where information exchange and women-owned business products and services can be found in one place, I aim to serve as a platform for companies struggling to open new sales channels. This will include lowering the threshold of the association together with 17 branches nationwide to build an efficient platform that any women entrepreneur can easily access.

Finally, I will work to support women heads of households in starting businesses and their children’s vocational education. After COVID-19, 70% of single-parent households report economic difficulties, and it is known that women heads of households face even greater challenges. Therefore, it is important for large corporations and public enterprises to support women heads of households in entrepreneurship while providing opportunities for their children’s specialized vocational education. To enable women heads of households to build hopeful lives, their children must be supported to grow into professional vocational workers. We look forward to the participation of many companies and schools.

The world is rapidly changing after the pandemic. In this rapidly shifting digital world, the association plans to prepare various win-win cooperation measures with the government, companies, and local communities to strengthen the capabilities of women-owned businesses. Reflecting on Confucius’s teaching that “When many people’s intentions are gathered, there is nothing that cannot be done,” we seek to listen carefully to the valuable opinions of businesses.