Research Article
An Empirical Study on Entrepreneurs' Startup Motivation and Job Creation
1 Dongyang Mirae University, 2 Korea University
Published: January 2018 · Vol. 47, No. 4 · pp. 783-805
DOI: https://doi.org/10.17287/kmr.2018.47.4.783
Full Text
Abstract
This study empirically examined the causal relationships among various variables related to entrepreneurship and job creation. Based on entrepreneurial motivation theory, startups were classified into necessity-driven and opportunity-driven types, and differences in firm survival rates and employment growth according to startup type were analyzed. For this purpose, panel data were constructed for the 25 districts of Seoul, including the number of startup firms, firm survival rates, total employment change, average employment change, GDP, unemployment rate, resident population by district, and land use zoning by district. Regression analysis results showed that, albeit with limitations, entrepreneurship is related to employment growth, and particularly when opportunity-driven startups survive, they exhibit high average employment growth rates and generate additional employment. In contrast, necessity-driven startups experienced a sharp long-term decline in total employment due to high closure rates, and even when they survived, no significant level of additional job creation was achieved. Therefore, it was concluded that policies aimed at transforming Seoul's startup ecosystem—where necessity-driven startups constitute the majority—into a structure with a higher proportion of opportunity-driven startups, while simultaneously improving the survival rate of necessity-driven startups, would be the policy direction for increasing employment and resolving unemployment through entrepreneurship. Additionally, at the regional level, districts with a higher proportion of industrial-use land relative to residential-use land showed higher growth rates in both total and average employment, highlighting the need to preserve the manufacturing base and foster urban manufacturing industrial complexes centered on light industry.
