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Table 1 Introduction to various factors influencing the selection of SMEs-recommendable industry areas based on the KSIC

From: Study for selection of industrial areas suitable to small and medium-sized enterprises (SMEs) in Korea

Factor

Definition

Usefulness

Annual sales

Amount of income from selling goods or providing services during 1 year

One of the representative indicators for the market size of industry

Three-firm concentration ratio (CR3)

Total market share (%) of top three companies

Evidence for the degree of market concentration

Herfindahl-Hirschman Index (HHI)

Sum of squared value of market share percentage

Evidence for the degree of market concentration

Compound Annual Growth Rate (CAGR) of sales

Mean annual growth rate of sales over a specified period of time

Evidence for the growth potential of industry