Page 79 - Contributed Paper Session (CPS) - Volume 6

CPS1826 Younyoung Park
fundamental has been created for decades, but the service sector still shows
low levels of exports and value added. Considering the importance of
hospitality sector in tourism which is high value added industry, it is urgent to
secure international competitiveness. Also, it could be play a pivotal role to
create employment. For this reason, supporting policies that are similar to the
manufacturing sector should be prepared. It is meaningful that this study
examined the various indicators around life cycles of enterprises by
subdividing them into industries. However, it could be alleged that in-depth
analysis of the variables has not been achieved due to lack of detailed statistics
by industry as a limitation. It is hoped that more detailed statistics could be
produced in the near future.

Keywords
Enterprise; Life cycle; Birth; Death; Variable indicator; Policy Implications

1. Introduction
Information on the life cycle of an enterprise provides very useful tool to
economic entities participating in industrial activities. In addition to analysis of
birth and death, which best represents the life cycle; research on variables
could be an important touchstone for enhancing industrial competitiveness.
The purpose of this paper is to derive demographic indicator and the associate
variables using available data and to analyze the association. This study is
supposed to presuppose two conditions. The scope of research is limited to
the manufacturing, wholesale and retail trade, and accommodation and
restaurant business. The second one is that indicator could be obtained from
existing approval statistics and could be reprocessed for the study purpose.
This paper starts with raising three research questions to be addressed.
Q1. Whether could be justifiable to diagnose the indicators for life cycle of an
enterprise by industry and scale?
Q2. Whether could be examined the affecting variables to life cycle of
enterprises?
Q3. Whether could be possible to investigate the association between them?
To address the raised questions, it will begin with data searching and create
indicators of both sides and will attempt to analyze the relationship.

2. Diagnosis of life cycle
1) Data source and calculation
It has used business demography statistics which was developed in 2012.
To calculate the indicator, basic dataset was prepared using time serious table
of active, birth, death from it. Firstly, three industrial dataset was separated
from basic dataset. Secondly, these dataset was separated into two groups by
number of employees. One is one person enterprise. The other is 2 and more

68 | I S I W S C 2 0 1 9