earticle

영어

In this paper, we describe our analysis of the efficiency of local credit guarantee foundations for financial support for small business in Korea. These foundations provide financial support to small business as an investment. We evaluated them using two methods. The first method was the estimation of relative efficiencies for each of sixteen local creditors by checking their profits. The second method compared revenue between two groups of companies in order to analyze how effectively the local creditors examined small business' efficiency: one business group received financial support from local creditors and the other group's companies were not given financial help from the local creditor. Using the first method, the sum of the invested money from the local creditors making profit that was higher than the average level was converted into market share. This result meant that the local creditors performed their task relatively efficiently. Furthermore, the result of the second method proved that the local creditors supplied their small business efficiently.