Study of the Influence of Excessive Competition Among Small Enterprises on Rate of Entry and Discontinuance of Business

This study aimed to examine the effect of excessive competition between small enterprises on entry and exit rates, By developing an estimation model, we were able to draw the following conclusions: First, the entry rate of small enterprises showed a significant effect on the exit rate of small enterprises in a positive (+) direction. Second, the rate of economic growth showed a significant effect on the proportion of the exit rate in a negative (-) direction. Third, an unemployment rate showed a positive (+) effect on the exit rate of small enterprises. The prediction model of the study can be utilized as an economic indicator for estimating the exit rate of small enterprises in Korea and will be served as a matter of impotence for the government's policy making and forecasting.