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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