Competition Rate for Youth Startup Academy Reaches 5.5 to 1
Despite Economic Slowdown, Interest in Startups Remains High
Toss, Zigbang. These companies, now known by everyone at just the mention of their names, share one more thing besides being 'unicorns,' which are unlisted companies valued at over 1 trillion won. That is, they are alumni of the Youth Startup Academy. The Youth Startup Academy is a program by the Ministry of SMEs and Startups that discovers outstanding entrepreneurs with promising startup ideas and innovative technologies and supports all stages of startup through a package including provision of residence space, education and coaching, and commercialization funding. It is operated by the Small and Medium Business Corporation. Although the startup market has been shrinking due to challenging domestic and international economic conditions recently, the popularity of the Youth Startup Academy is increasing.
According to the Small and Medium Business Corporation on the 27th, the 15th admission ceremony was held for the Youth Startup Academy, which received a total of 4,671 applications for 850 spots this year, recording a final competition rate of 5.5 to 1. The competition rate for the Youth Startup Academy has been steadily rising recently. In 2023, the competition rate was 3.6 to 1, and last year it was 4.6 to 1. This means that despite the slow recovery of the venture investment market, the enthusiasm for startups remains strong.
This atmosphere is quite different from the recent stagnation in startups. According to the '2024 Startup Enterprise Trends' announced by the Ministry of SMEs and Startups, the number of companies founded last year decreased by 4.5% from the previous year to 1,182,905, the lowest since the statistics began in 2016 with 1,190,177 companies. The reasons cited include economic slowdown, consumption contraction due to the so-called 'three highs' of high interest rates, high exchange rates, and high prices, as well as ongoing low birth rates and aging population.
Industry insiders believe that the increasingly difficult startup environment, where survival depends solely on the entrepreneur's competitiveness, has rather increased the demand for government support programs. The Youth Startup Academy provides comprehensive support for all processes necessary for startups, including up to 100 million won in commercialization funding, education and mentoring, and investment attraction support. It operates 18 centers nationwide, categorized into global type, regional specialization type, and investment type, allowing startups to receive systematic assistance according to their needs.
The achievements so far are also why the Youth Startup Academy attracts the attention of entrepreneurs every year. The Youth Startup Academy started operations in 2011 and is now in its 15th year, having produced 8,477 young entrepreneurs to date. Last year, it achieved results such as one company listing on KOSDAQ and four companies designated as Baby Unicorns. Over the past five years since 2019, the sales of alumni companies reached 4.4897 trillion won, and 13,610 new jobs were created. A representative from the Small and Medium Business Corporation said, "The Youth Startup Academy provides a stepping stone for young entrepreneurs dreaming of startups, and a youth startup ecosystem is being formed around it."
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