Small and medium businesses in South Korea and Singapore in the context of the COVID-19 pandemic

The research article analyzes the features of public support for small and medium businesses (SMEs) in the leading countries of the Asian world model of innovative development (South Korea and Singapore). A comparative analysis of anti-crisis government programs of SMEs financing in conditions of COVID-19 is presented. The key directions of using the experience of South Korea and Singapore for the development of a system of state financial and credit support for SMEs in Russia and overcoming the consequences of the coronavirus crisis are proposed.

To reduce the financial burden on the federal budget, it is urgent for Russia to switch from SME state support to a system of public-private financial and credit support model. This goal can be achieved by developing an enabling environment for innovation of SMEs and large businesses and incentives to accelerate commercialization and promote Research and Development to the Global innovation market.

The study and adaptation to the conditions of Russia of the best practice of the leading countries of the Asian model of innovative economic development in the expansion of effective and targeted state programs of credit guarantees and subsidies for SMEs, forms of tax incentives for national large private companies and foreign investors would contribute to employment growth and increase the contribution of SMEs to Gross domestic product. The advanced experience of South Korea and Singapore can be useful in organizing forms of online business and developing targeted employment support programs in sectors of the economy affected by the COVID-19.

Keywords

South Korea, Singapore, Russia, government development institutions, small and medium-sized enterprises, financial support, innovation, pandemic COVID-19

Received

05.08.2021

Publication date

02.03.2022

Number of characters

19696

Cite

GOST	Zabolotskaya V. Small and medium businesses in South Korea and Singapore in the context of the COVID-19 pandemic // Asia and Africa Today – 2022. – Issue 2 C. 56-63 [Electronic resource]. URL: https://asaf-today.ru/S032150750018780-0-1 (circulation date: 19.04.2024). DOI: 10.31857/S032150750018780-0
MLA	Zabolotskaya, Viсtoria V "Small and medium businesses in South Korea and Singapore in the context of the COVID-19 pandemic." Asia and Africa Today 2 (2022):56-63. DOI: 10.31857/S032150750018780-0
APA	Zabolotskaya V. (2022). Small and medium businesses in South Korea and Singapore in the context of the COVID-19 pandemic. Asia and Africa Today (2), pp.56-63 DOI: 10.31857/S032150750018780-0

100 rub.

When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.

Number of purchasers: 0, views: 582

Readers community rating: votes 0

1. Hervas-Oliver J.-L., et al. 2016. On process innovation capabilities in SMEs: A taxonomy of process-oriented innovative SMEs. Journal of Small Business Management. Vol. 54, pp. 113-134. https://doi.org/10.1111/jsbm.12293

2. Saunila M. 2017. Innovation capability in achieving higher performance: Perspectives of management and employees. Technology Analysis & Strategic Management. Vol. 29, pp. 903-916. https://doi.org/10.1080/09537325.2016.1259469

3. Castela B., et al. 2018. Assessing the innovation capability of small-and medium-sized enterprises using a non-parametric and integrative approach. Management Decision. Vol. 56(6), pp. 1365-1383. DOI:10.1108/MD-02-2017-0156

4. Amoroso S. 2017. Multilevel heterogeneity of R&D cooperation and innovation determinants. Eurasian Business Review. Vol. 7(1), pp. 93-120. DOI: https://doi.org/10.1007/s40821-018-00116-3

5. Nassimbeni G. 2001. Technology, innovation capacity, and the export attitude of small manufacturing firms: A logit/ tobit model. Research Policy. Vol. 30(2), pp. 245-262.

6. Romijn A. H., Albaladejo M. 2002. Determinants of innovation capability in small electronics and software firms in southeast England. Research Policy. Vol. 31(7), pp. 1053-1067. DOI: 10.1016/S0048-7333(01)00176-7

7. Kafetzopoulos D., Psomas E. 2015. The impact of innovation capability on the performance of manufacturing companies: The Greek case. Journal of Manufacturing Technology Management. Vol. 26(1), pp. 104-113. http://dx.doi.org/10.1108/JMTM-12-2012-0117

8. Fitz-Koch S., Nordqvist M. 2017. The reciprocal relationship of innovation capabilities and socioemotional wealth in a family firm. Journal of Small Business Management. Vol. 55, pp. 547-570. https://doi.org/10.1111/jsbm.12343

9. Kim M.-K., Park J.-H., Paik J.-H. 2018. Factors influencing innovation capability of small and medium-sized enterprises in Korean manufacturing sector: facilitators, barriers and moderators. International Journal of Technology Management. Vol. 76, pp. 214-235. https://doi.org/10.1504/IJTM.2018.091286

10. De Martino M., Magnotti F. 2018. The innovation capacity of small food firms in Italy. European Journal of Innovation Management. Vol. 21, pp. 362-383. DOI: 10.1108/EJIM-04-2017-0041

11. Zhang M., Hartley J. L. 2018. Guanxi, IT systems, and innovation capability: The moderating role of proactiveness. Journal of Business Research. Vol. 90, pp. 75-86. DOI: 10.1016/j.jbusres.2018.04.036

12. Guo Y., Woo J.J. (eds.). 2016. Singapore vs Switzerland: Secrets of Small State Success, World Scientific Pub. Co. Inc., 303 p.

13. Zabolotskaya V.V. 2020. Singapore: government support for small and medium-sized businesses. Asia and Africa today. № 2, pp. 43-49. (In Russ.). DOI: 10.31857/S032150750008472-1

14. Wang J. 2018. Innovation and government intervention: A comparison of Singapore and Hong Kong. Research Policy. Vol. 47(2), pp. 399‒412. DOI: 10.1016/j.respol.2017.12.008

15. Tan Khee Giap, Nguyen Le Phuong Anh, Ye Ye Denise. 2015. Development Growth Models for Singapore and Malaysia: A Geweke Causality Analysis. Journal of Centrum Cathedra: The Business and Economics Research Journal. Vol. 8(2), pp.165-186. https://doi.org/10.1108/JCC-08-02-2015-B005

16. Schwab K. 2019. The Global Competitiveness Report 2019. World Economic Forum. http://www3.weforum.org/docs/WEF_The GlobalCompetitivenessReport2019.pdf (accessed 2.12.2021)

17. Kim S. 2021. South Korea’s Exports Increase by Most in 10 Years in April. 1.05.2021. https://www.bloomberg.com/news/articles/ 2021-05-01/south-korea-s-exports-increase-by-most-in-10-years-in-april (accessed 7.06.2021)

18. Ease of Doing Business rankings. The World Bank. https://www.doingbusiness.org/en/rankings (accessed 1.12.2021)

19. Statistics. Ministry of SMES and Startups. https://www.mss.go.kr/site/eng/02/20204000000002019110624.jsp# (accessed 08.12.2021)

20. Detailed Statistical Time Series. Singapore Government Agency. Department of Statistics of Singapore. https://www.singstat. gov.sg/find-data/search-by-theme/industry/enterprises/latest-data (accessed 8.12.2021)

21. Jae S.L. 2015. Large Family Business in the Republic of Korea: Features of Corporate Governance and Their Role in the Development of the National Economy. Bulletin of RUDN University. Series: Economics. Vol. 4, p. 27-37. (In Russ.)

22. South Korean SMEs exports edge down in 2020 despite pandemic. Bahrain News Agency. 19.01.2021. https://www.bna.bh/en/ SouthKoreanSMEsexportsedgedownin2020despitepandemic.aspx?cms=q8FmFJgiscL2fwIzON1%2BDuTxbJTL972YmSkSa4j1D UI%3D (accessed 07.12.2021)

23. Economic Survey of Singapore 2020. Ministry of Trade and Industry. February 2021. 98 p. https://www.mti.gov.sg/-/media/MTI/Resources/Economic-Survey-of-Singapore/2020/Economic-Survey-of-Singapore-2020/FullReport_AES2020.pdf (accessed 7.12.2021)

24. Rajaram M., Tan M. COVID-19 Reliefs and Support for SMES in Singapore. K&L GATES. 10.04.2021. https://www.klgates.com/ COVID-19-Reliefs-and-Support-for-Small-and-Medium-Enterprises-SMEs-in-Singapore-04-10-2020 (accessed 7.06.2021)

25. Lee B. Support for SMEs in Covid-19 Crisis: the case of the Republic of Korea. European Bank for Reconstruction and Development. 20.07.2020. https://www.ebrd.com/what-we-do/economic-research-and-data/cse-economists/support-for-smes-in-covid19-crisis-the-case-of-republic-of-korea.html (accessed 7.12.2021)

26. Schwab K., Zahidi S. 2020. The Global Competitiveness Report. How Countries are Performing on the Road to Recovery. World Economic Forum. Special Edition. http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2020.pdf (accessed 7.12.2021)

27. Wage Credit Scheme (WCS). Singapore Government Agency. Inland Revenue Authority of Singapore. https://www.iras.gov.sg/ irashome/Schemes/Businesses/Wage-Credit-Scheme--WCS-/ (accessed 7.12.2021)

28. Asia Small and Medium-sized Enterprise Monitor 2020. Asian Development Bank. October 2020. Vol. 1. 278 p. https://adb.org/ sites/default/files/publication/646146/asia-sme-monitor-2020-volume-1.pdf (accessed 30.01.2022)

29. As Covid-19 lingers, SMEs are looking towards a stronger recovery in 2022. A Perspective by Mr Mervyn Koh, Managing Director and Country Head, Business Banking Singapore. UOB. 9.02.2021. https://www.uob.com.sg/business/insights/pre-budget-article. page?path=data/bb/63&cr=segment (accessed 1.02.2022)

30. Belozyorov S.A., Zabolotskaya V.V. 2021. State Stimulation of Innovation Activities in Switzerland and Russia. Contemporary Europe. № 1(101), pp. 108-120. (In Russ.). DOI: 10.15211/soveurope12021108120