The Korean government has released its 2024 Women’s Enterprise Survey, highlighting a nuanced landscape for women-owned businesses in 2023. The report indicates that while these enterprises showed improvements in stability and productivity, they simultaneously experienced declines in profitability and business activity.
The survey revealed several key insights about women-owned businesses. Companies demonstrated enhanced financial stability, with the debt ratio improving from 135.2% to 123.1%, signaling a more robust financial foundation. Productivity also saw a marginal increase, with average sales per employee rising from 205 million won to 208 million won, reflecting modest but positive growth.
However, the businesses faced challenges in profitability and operational efficiency. The net profit margin declined from 5.1% to 3.5%, indicating increased financial pressures. Additionally, the self-capital turnover rate dropped from 2.2 to 1.5, suggesting reduced operational effectiveness.
Despite these challenges, women-owned businesses showed promising developments in international engagement. Export experiences increased from 1.9% to 2.4%, and the proportion of export sales to total revenue grew from 2.6% to 3.1%. Research and development investments remained consistent with the previous year, though the average investment amount increased.
The survey highlighted critical areas where women entrepreneurs need governmental support. Business owners prioritized support in four key areas: financial assistance, tax incentives, workforce development, and market access. Encouragingly, 14% of women-owned businesses have experience supplying government agencies, with 77% of those businesses reporting positive outcomes.
Regarding business perceptions, women-owned enterprises were recognized for their strengths in meticulousness, while areas for improvement included entrepreneurial spirit and work-life balance. The survey noted that women business owners face more significant challenges in balancing professional and personal responsibilities compared to their male counterparts.
International expansion remains a complex endeavor for these businesses. The survey identified limitations in obtaining international certifications and qualifications, with the United States emerging as the most desired market for potential global expansion.
