Efforts are underway to establish a framework to support the management stability and sustainable growth of young small business owners facing challenges due to sluggish domestic demand, high interest rates, and inflation.
The 'Gwangju Integrated Special City Youth Small Business Promotion and Support Ordinance,' proposed by Gwangju lawmaker Kang Seong-chan of the Democratic Party, passed the relevant committee on September 11.
This ordinance focuses on supporting not just initial startup assistance but also product development, market expansion, management education, and facility improvements, aiming to provide a foundation for young small business owners to operate stably in the region.
During the committee review, the age range for eligible young business owners was expanded from the original 19 to 34 years to 18 to 45 years.
Kang explained that this adjustment considers the unique regional characteristics, including many rural and depopulated areas, and aims to broaden the scope of young small business owners who can receive policy support.
The ordinance includes provisions for establishing and implementing annual support plans for the growth and management stability of young small business owners.
Specific support initiatives include product development, distribution and promotion, management education and consulting, facility improvements, and networking and joint projects among young small business owners.
It also establishes a framework for collaboration between city, county, and district governments and relevant organizations, allowing for the delegation of projects to specialized institutions or organizations for efficient implementation.
The high closure rate of young self-employed individuals was also cited as a reason for the ordinance's creation.
According to analysis data from NH Nonghyup Bank, the closure rate of young self-employed individuals in the Gwangju area is 67%, the third highest in the country. Last year, the number of business closure reports nationwide exceeded one million, indicating challenging conditions for small businesses.
As a result, there is a growing call for policies that not only focus on increasing the number of young entrepreneurs but also support the maintenance and growth of their businesses after startup.
Kang Seong-chan stated, “What young small business owners need is not just one-time support at the moment of startup, but a support system that helps them overcome management crises and grow sustainably.” He added, “We aimed to establish a systematic foundation that can be felt on the ground, from product development to market expansion, management capacity enhancement, and facility improvements.”
He further emphasized, “For young people to start businesses and continue operating stably in the region, it is essential to invigorate local economies and neighborhoods. We will continue to ensure that the voices of young small business owners are reflected in policies and lead to self-sufficiency.”
The ordinance has passed the relevant committee stage and is pending approval from the full council. If ultimately approved, it is expected to provide a policy basis for establishing annual support plans at the integrated special city level, supporting young small business owners from startup through to management stability and growth.
* This article has been translated by AI.
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