September 12, 2011
Dark Days Could Lead to Dawn of Japanese
Entrepreneurship
By Debbie Howard
The Global Entrepreneurship Monitor, or GEM has pointed out that
in "2000-2009, Japan recorded one of the lowest rates of
entrepreneurial activity amongst the world’s leading nations." The
GEM report from 2009 said that "Japan’s citizens exhibit the greatest
fear of failure among the 20 innovation-driven economies the GEM
analyzed, and ranked dead last in the number of citizens who
perceive opportunities for entrepreneurship."
Another perhaps unsurprising result, according to the American
Chamber of Commerce in Japan’s Growth Strategy White Paper, is
that Japan has the lowest proportion of people who consider
becoming an entrepreneur a good move.
Some have surmised that Japan has a long-standing cultural bias
against entrepreneurship, instead focusing on big business and a
regulatory environment that discourages rather than encourages
start-ups. However, with the long-term economic doldrums and the
recent disaster trifecta of the earthquake, tsunami and nuclear
reactor meltdowns, developing an environment conducive to
entrepreneuring – however unacceptable or distasteful – may be one
of the best ways to help fuel economic growth.
There are several macro trends in place that could bring
entrepreneurship to life in the near future. One is the economic
insecurity that normal Japanese citizens feel these days. It is
palpable, based on high joblessness and a growing lack of trust and
confidence in government and even private sector companies. This,
coupled with dramatically changed attitudes and self-images among
the Japanese populace, provides fertile ground indeed.
As research by Japan Market Resource Network discovered, Japanese
people were beginning to exhibit more self-responsibility, more
individuality and more independence as early as 2004, based
largely on their having lived through nearly 15 years of economic
stagnation. Still reeling from the Lehman shock and now dealing
with the cascading disasters from March, Japanese once again seem
poised to take charge of the lives in new and different ways.
Women, representing approximately half of all employable adults in
Japan, could play an important role in reviving the country – if
they are given a chance. Government policies to promote women in
the workplace are now in place, and corporations, both foreign and
domestic, have instituted policies to help with work-life balance
and promote diversity. Yet Japan still has a very low percentage of
"women in the boardroom," and a high percentage of women still
"retire" from their careers once they have their first child.
According to Kathy Mitsui, chief Japan equity strategist at Goldman
Sachs Japan Co., employment of women is a critical chess piece in
rekindling economic growth in Japan against a backdrop of an
aging and dwindling population with a low birthrate; high and
unsustainable fiscal debt; domestic deflation; and less maneuvering
room for fiscal and monetary policy.
In addition to the general impact that an increase in women’s
employment could have on Japan’s economy, an increase in female
entrepreneurship could help to turbocharge economic growth still
further.
Entrepreneuring offers both women and men the opportunity to
create new horizons for themselves, while at the same time
benefitting society by creating jobs and economic growth. While
Japanese is considering ways to revitalize itself, it is certainly
worthwhile to take a deep look at entrepreneurship and how to
foster the entrepreneurial spirit among both genders.