The Role of Venture Capital in the Creation of New Venture Firms: Time-series Analysis in the Context of South Korean Industries

창업투자회사의 벤처 기업 창출 기여에 관한 시계열 분석

  • Kim, Taekyung (Business Administration, The University of Suwon)
  • Received : 2014.11.18
  • Accepted : 2014.12.21
  • Published : 2014.12.31

Abstract

The creation of new venture firm has been regarded as a key of creating more job opportunities and discovering new value engines for various industries. It is positively expected that venture capitals play an important role of supporting the process. Nevertheless, there is a scant of research efforts to analyze empirical data for understanding cross-correlations between investment of venture capital and new venture foundation. To fill the gap, this study investigated sets of time-series data from 1998 to 2014 in the context of South Korean economy. The results reveal that venture capitals have contributed significantly to the quantitative increase of venture firms. In addition, the findings show that the creation of new venture fails to yield a direct impact on resolving young unemployment problems in short term. The paper contributes to the research community on new venture foundation by providing insightful views.