A Study on Strategies for C reating an E cosystem for S tart-up Ventures f rom an Entrepreneurial Sate Perspective in a Depopulated area in Korea

Abstract

Purpose: Population decline, the disappearance of local cities, and aging demographics are accelerating social structural changes. Accordingly, the trellima(population outflow, primary industry structure, pandemic) in the west part of Gyeongnam region is expected to be an important variable for regional policies in the future. It is intended to derive a model of the startup venture ecosystem in western Gyeongnam that takes crisis as an opportunity and to establish a public-private cooperation system from an entrepreneurial-type national perspective. Research design, data, and methodology: To confirm changes in the demographic structure of Western Gyeongnam, the population and migration status of each city and county were checked using statistical data from 2012 to 2020. In addition, statistical analysis was performed to confirm the economic and industrial structure of each region. To compare these results, we looked at overseas cases together. Overseas cases were analyzed in Alvdal in Norway, Hjørring in Denmark, Narpes in Finland, Pitea in Sweden, Paducah in the United States, and Ozmachi in Japan. Results: As a result of the analysis of overseas cases, the strength of regional development is the educational system that guarantees various creative leisure activities such as cultural and sports facilities. Employment and quality jobs are being achieved through business attraction and start-up venture companies, and cultural innovation based on entrepreneurship is taking place. Through this, the establishment of many start-up venture companies based in the region is promoted every year. In addition, the relatively low cost of living and moving to commercial facilities compared to other areas due to the improvement of the residential environment is leading to an improvement in the quality of life and the formation of a close local community. Therefore, it can be seen that the active social and economic participation of local members is ultimately acting as a fundamental opportunity for regional integration. Implications: This study is to build a startup venture ecosystem model in a depopulated area. Companies, governments, investors, and research institutes, which are the components of the model, were connected to fit their respective roles to form the model. Local governments can provide government guarantees to businesses, institutions, and investments, and can provide financial support such as local funds. In this way, the initial financial risk of start-up venture companies can be mitigated. And it provides a safety net for active innovation. In the future, securing the driving force for innovative growth will become more important. To this end, as shown in the case study, a plan to internalize entrepreneurship and the startup venture ecosystem in the local community should be prepared.