Abstract

This study analyzed the factors affecting the ratio of net profit to sales in the small commercial and commercial industry market in Seoul. The analysis method used multiple regression analysis in consideration of the ratio of net income, which is a dependent variable, and the cross-sectional characteristics of independent variables. The analysis results and implications of this study are summarized as follows.
 First, small business owners should consider various physical and cost characteristics to increase net profit, which is actual disposable income. In particular, since rent and net profit have a large negative (-) relationship, it is necessary to judge a reasonable level of rent.
 Second, when planning and operating small businesses in the Gangnam area, it is necessary to consider reasonable rent levels and parking lots. In addition, small business industries in the Gangnam area need to judge a reasonable level of operating hours considering time costs such as labor and operating costs rather than extending physical time to maximize net profit.
 Third, it seems that the small business sector in the Gangnam area needs more reasonable consideration than the non-Gangnam area for various physical and cost factors when starting and operating the small business, considering the high consumption characteristics of each industry.
 Fourth, even in the case of small shopping malls, it is found that there is an economy of some size, so it is necessary to study the most effective area to maximize net profit.
 Finally, it was found that the total investment cost, which is the largest cost of starting a business, is not a factor that increases net profit. Therefore, it can be said that a conservative approach to excessive premium and facility investment costs is necessary when small business owners plan and implement them.

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