The Korean government recognizes the meaning and importance of small and medium-sized businesses in the national economy and has protected and fostered them through policies. But in a reality where the actual competitiveness and poor situation of small and medium-sized businesses are not improving, individual policies have faced various issues and claims for modification or abolition. Accordingly, this study examined the impact of small and medium-sized business protection policies on encouraging entrepreneurship and sought implications. The SME suitable industry system was judged to have a low impact on risk-taking and progressiveness, while having a two-sided nature on innovativeness. SMEs business coordination system was found to require high risk tolerance and a medium level of initiative, while not having a high level of innovativeness. And finally, It was found that the competitive product procurement system among SMEs places high demands on all three components of entrepreneurship. This is meaningful in that it promotes a greater understanding of small and medium-sized business protection policies and, based on this, examines the actual effects of policies on the field. and It is meaningful in that it provided the theoretical basis for empirical research by linking and discussing policy and individual corporate performance.