Factors Affecting Business Performance of Horse Riding Clubs

Abstract

In Korea each year an estimated 0.9 million people ride horses. As the number of horse riders continues to increase, there has been an increase in the number of riding clubs. This study seeks to determine the potential for success of riding clubs. Based on data from on site survey, which is designed to be representative of Korean horse riding clubs, this paper focuses on business diagnostics and explores the factors affecting the business performance for improving competitiveness. Results show that more than 70% of riding clubs recorded the excess profits in 2019, however, more than 40% of their sales relied on government assistance programs. Our ordinary least squares estimates found worker types, the number of certified coaches, membership types, regions had a significant effect on business performance. Taken together, the results suggest more detailed data and methodological work is needed on how to robustly capture management efficiency and derive improvement measures to riding clubs.