Increase In 20`s Sole Proprietors Graduated From University

There are many `20`s sole proprietors who start their own business just after graduating from university. There was 16.9% for 20`s out of reserve sole proprietors visited `New Small Business Expo 2002` held in October. The rate of 30`s and 40`s was 46.2% and 28.5% respectively.

`Young age` of such business founding has been conspicuous even in a market of loans for initial founding funds. Small Business Development Center(SBDC) affiliated with Small & Medium Business Administration(SMBA) investigates applicants for the initial founding loan and then recommends 20,000 people each year. Among them, 10% is estimated as `20`s sole proprietors` who found the business right after university.

Providing services of business consulting and training to reserve sole proprietors, `Changupe.Com` said that two of ten consulting customers were the reserve sole proprietors who just graduated from the university.

It industries include a restaurant, internet business, distribution business and Soho business for men, and a health & beuty-related business, Soho business, Internet business and education business for women.

Lee In-Ho, manager of Changupe.Com explained in relation to such boom of business founding, “As domestic companies have focused on the experienced people for a recruiting, college students tend to change into the business founding.”

According to `the result of additional investigation for young people out of economically-active population` published by Korea National Statistical Office (NSO), an unemployment rate of young people who graduated from or quit school on a basis of the end of June, was 6.1% highly increased over 2.7% of total unemployment rate.

The analysis says that the business founding with small capital instigates the 20`s sole proprietorship as a new Internet has been widely spread.

`Auction`, the internet auction site awarded the 1,500 good sales people among Soho operators of its Internet site. Among them, 20% was people in early twenties. `Auction` will visit the universities and have a briefing session next year as `20`s traders` become the main force.

Jong sik Kong kong@donga.com