earticle

영어

For several decades, government loan program for small business has been justified by enabling them to mobilize sufficient financial resources which could not be possible without loan program because of market failure problems. However, recently, government loan program has been under fierce criticism for its inefficiency and required to be fully examined for its performance and productivity. Following this background, this study intends to evaluate the performance and productivity of government loan program, specially on Venture Business Start-up Program by Small Business Corporation. As a result, the small corporations participated in Venture Business Start-up Program have shown considerable amount of productivity effects. Especially regarding with return on sales, participated corporations have shown more than 34.8% improvement compared with other non-participated corporations. In addition, Venture Business Start-up Program has resulted in more improved performance compared with other government loan programs, such as Business Restructuring Loan Program. This study presents positive conclusion on the performance of government loan program which gives lots of controversy in recent years. In addition, this result suggests that government loan program could show better performance and productivity when the program is focused on better targeted corporations such as innovative venture corporations.