21st Century Innovation Systems for Japan and the United States Lessons from a Decade of Change: Report of a Symposium (2009) / Chapter Skim
Currently Skimming:
Programs to Stimulate Startups and Entrepreneurship in Japan: Experiences and Lessons--Takehiko Yasuda
Programs to Stimulate Startups and Entrepreneurship in Japan: Experiences and Lessons--Takehiko Yasuda
Pages 95-107
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 95... ...
. The Japanese government first became aware of the reversal of the rate of entry and exit in 1989, which was reported in the "White Paper on Small and Medium Enterprises in Japan." Although the paper warned that the slowdown in startup formation could lead to economic stagnation, it took a long time for this recognition to lead to actual policy changes.
|
From page 96... ...
a new startup loan program through the National Life Finance Corporation, which requires no collateral, guarantors, or personal guarantees, and the expansion of the upper limit of "free property" based on the New Bankruptcy Law.4 Removal of Minimum capital Regulation Removal of the minimum capital requirement for limited liability companies was conditionally executed in February 2004 by way of revision of the Law for 1In 1989 when the reversal of the rate of entry and the exit rate based on number of enterprises was discovered, the author was working for the Small and Medium Enterprise Agency (SME Agency) as a deputy director.
|
From page 97... ...
In 1999, the Japan Productivity Center for Socio-Economic Development established the National Startup and Venture Forum, a nonprofit nongovernmental organization to provide services to attract and help entrepreneurs. Among its activities was the establishment of the Japan Venture Award to honor successful entrepreneurs and their sponsors that could serve as role models for the next generation of startups.
|
From page 98... ...
If government-affiliated finan cial institutions were willing to lend more money, entrepreneurs would prefer to begin with a larger-size firm. An empirical study using Japanese data confirms that entrepreneurs who used the National Life Finance Corporation as a source of funding were able to enlarge startup firm size even if other conditions were controlled (Yasuda 2005)
|
From page 99... ...
3. PReliMinaRy analySiS oF tHe buSineSS aWaReneSS oF StaRtuP SuPPoRtinG Policy 3.1 business awareness of Startup Supporting Policy If Japanese policies to promote entrepreneurship are to succeed, government officials must identify and understand latent and potential entrepreneurs, design information campaigns that will ensure that these people are aware of the new policy incentives, and monitor how the policies influence the target audience.
|
From page 100... ...
At the same time, a highly positive relationship can be observed between the degree of recognition and the degree of use of policy measures. 3.2 Model for estimation Next, we move to the question of which entrepreneurs acquire information on policies useful for startups and which do not.
|
From page 101... ...
• Public finance -- Loan by National Life Finance Corporation, Japan Finance Corporation for Small and Medium Enterprise and Shokochukin Bank (The Central Cooperative Bank for Commerce and Industry)
|
From page 102... ...
The second finding shows that entrepreneurs with related work experience have an advantage in acquiring information on financial support policy by way of their previous work; however, they do not know about expanded policies for promoting startups because many of them have no experience at the startup stage. Underlying the third and forth findings is the fact that older and "family business development-type" entrepreneurs are under less liquidity constraint.
|
From page 103... ...
Three main pillars of startup support policies and other measures concerning startup promotion were described. From these descriptions, we can also see that in the past 10 years the mindset of Japanese government has significantly changed from the view that a high level of business entrants brings about excessive competition among SMEs to the view that entrepreneurial activities are indispensable for vitalizing the national economy.
|
From page 104... ...
0.208* –0.022 0.111 –0.039 –0.036 Related Work experience Dummy (0.121)
|
From page 105... ...
=10 percent significant level; Figures in parentheses indicate standard error; Coefficients for industry dummies are omitted.
|
From page 106... ...
2003. "White Paper on Small and Medium Enterprises in Japan." Tokyo, Japan: Japan Small Business Research Institute.
|
From page 107... ...
anneX a Basic Statistics for Entrepreneur Attributes 30 years old or 31-40 years old 41-50 years old 51-60 years old over 60 years old less age of entrepreneur at time of startup 5.8% 22.0% 37.8% 29.6% 4.6% Female 2.9% High education 57.4% Related work experience 79.6% business work experience 32.2% Family business Startup type Spin-off type Franchise type independence type others development type 15.8% 3.2% 65.9% 6.4% 8.7% ¥2.5 million ¥15 million Personal income level just before startup ¥2.5-5 million ¥5-10 million ¥10-15 million or less or more 5.6% 17.6% 43.3% 24.3% 9.3% anneX b Basic Statistics for Firm Attributes number of PRePublication coPy workers 5 workers or 111 or 6-20 21-35 36-50 51-65 66-80 81-95 96-110 at the of less more startup 53.0% 37.1% 5.4% 1.3% 1.3% 0.4% 0.4% 0.1% 0.8% Sector of manufacturing transportation communication wholesale retail restaurant service startup firm 20.0% 2.2% 1.3% 27.3% 15.4% 1.5% 32.2% legal form at unlimited limited liability startup liability 85.9% 14.1% 107
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.