The objective of this research is to analyze the growth of venture businesses and suggest future policy tasks. Based on the theory of firm growth, this research focuses on identifying and understanding those factors that contribute to the growth of venture businesses in order to provide policy recommendations geared towards the development of the venture industry. In addition, the influences and issues of short-term growth in the venture industry such as venture capital and KOSDAQ are studied.

After the financial crisis, venture businesses, venture capital and KOSDAQ experienced rapid growth. Although venture businesses mushroomed, the increase of venture businesses through the Venture Designation Policy is inherent with various problems such as the 'newness' of venture business and advanced technology. Moreover, with venture capital grown rapidly, sweeping changes from the increased supply of venture capital in the form of loan to investment was observed. Although largely driven by government measures, the KOSDAQ market experienced rapid growth, which resulted in a venture bubble. Many problems have surfaced as well.

Based on the empirical results of the determinants of the growth of venture businesses, the education level of the founder and prior experience in setting up businesses related to individual entrepreneurs, in areas such as national public research centers, private research centers, university professors, etc., appear to record faster growth than those related to companies. The rapid growth of venture businesses related to individual entrepreneurs seems to be achieved through state-of-the-art technology often backed by research and development. In addition, older venture businesses tend to record slower growth. Although having longer experience may record higher growth rates, younger venture businesses appear to have higher potential for faster growth due to a proactive business management. The technological network activity of venture businesses positively influences growth. This in turn implies that tapping into external resources through technological networks may be a valuable resource to venture businesses. High growth is recorded for venture businesses particularly in the field of industries with a high industry growth rate. Venture businesses in high-tech industries such as telecommunications are characterized by rapid growth rates. Finally empirical evidence does not support the hypothesis that the utilization of the government's venture support policy contributes to company growth.

The following policy recommendations follow the analyses of this study. First, government intervention in the venture industry such as the Venture Designation Policy should be reevaluated towards being minimized. In fact, its elimination needs to be considered since the resource allocation function to venture businesses should be performed by venture capital markets, as well as KOSDAQ markets. Public agencies that have assumed the role of venture capital which require high expertise, and has high potential for inefficiencies. Therefore, direct investment by the pubic sector such as the central government of provincial governments should be avoided.

Incubation organization and technological networks are important determinants of the growth of venture businesses. Venture businesses related to individual entrepreneurs exhibit faster growth than companies related venture enterprises. It is judged that venture businesses related to individual entrepreneurs such as those related to national public research centers or universities are generally equipped with advanced technology. Educational programs providing knowledge on business management need to be strengthened to enable enhanced convenience in setting up venture businesses related to national public research centers, private research centers, universities, etc. In addition, utilization of key external resources through networks positively affects the growth of venture businesses. Utilization of diverse technological networks surrounding venture businesses such as domestic and international universities, enterprises, experts, etc., tend to complement the limited resource capability of local venture businesses.

To enable persistent growth of venture businesses, the development of sound venture capital and KOSDAQ market are necessary. Since venture businesses tend to gave a high risk of failure, sufficient funding is not usually available to venture businesses through banks. Therefore, to propel the growth of venture businesses, the role of venture capital markets which are tolerant of high risk need to be enlarged. In addition, the KOSDAQ market should actively include blue chip venture businesses, while policy reform in order to strengthen the soundness of registration and participation in KOSDAQ through strengthening the public announcement function, enhancing transparency of markets, and so on, should be pursued as early as possible.

Venture businesses limiting themselves to the domestic market might lead to a weakening of international competitiveness and may also lag behind in terms of competition compared to foreign enterprises. According to a recent survey, penetration of venture businesses into overseas market seems to be rather insignificant. Globalization of venture businesses needs to be expedited not only to gain overseas market but is also necessary for the improvement of the technological prowess of local businesses through joint research and development and technology acquirement with foreign companies.

Finally the government needs to play a more active role in areas where market principles gave not been put into place. However, it needs to drastically minimize its role in areas where the market mechanism is functioning. Korea's venture industry has now passed the early stage of venture business growth. At present it appears that venture businesses, venture capital and the KOSDAQ are functioning under the principles of the market. At this point the government should vastly improve the environment to facilitate the establishment of venture businesses by moving away from the requirements to draw up a detailed architecture of the entire venture industry as it did in the early period of venture industry formation. It is more appropriate to put emphasis on a market-friendly venture policy. In particular, more important than direct investment allocation for individual venture businesses is an environment conducive for the establishment of dynamic venture businesses.