According to Sadayuki Sakakibara, Chairman of Keidanren (Japan Business Federation) the GDP of Japan has not grown since 1994.
This fact has been discussed by government officals, policy makers, and business leaders for years and yet impetus for addressing this issue with real policy change has only recently become a serious debate. One of the advisors crafting this debate is William Saito an entrepreneur, venture capitalist, public policy consultant and educator.
William Saito was recently interviewed by Tim Romero (interview can be found here: Startup in Japan). In the interview (which is nearly 40 minutes long) Mr. Saito suggests that creating a better environment for start-up's in Japan is key for revitalizing the economy, in turn resulting in GDP growth. Small to medium sized businesses create nearly all new jobs in Japan so exploring methods to encourage start-up creation and leveraging already existing assests is critical. During the interview, three themes emerged that I will summarize below.
How to create a better start-up environment in Japan
TEAMWORK
WOMEN ENTREPRENEURS
INTERNATIONAL EXPERIENCE
Teamwork seems to be a lost art in Japan. Toyota, one of Japan's most recognized companies, embodies the essence of teamwork. Teams working together seamlessly from start-to-finish provide a better product, and yet when it comes to making the most critical decisions, teams are left out of the equation.
In the interview, Mr. Saito suggests that all too often the decision-making process excludes the team which leads to abnormally risk-aversive decision making, driven by fear of failure, and loss of face.
Women Entrepreneurs are the new bastion of entreprenueurial spirit in Japan. The American Chamber of Commerce in Japan (ACCJ) reports record numbers of new women entreprenuer members joining the organization. As Treasurer of the Chubu Chapter of the ACCJ, I can report that some of our most well attended meetings in 2015 were held by the Women In Business committee, one of our most dynamic and consistently growing committees. Women entrepreneurs are definitely a valuable under-utilized resource in Japan.
In terms of women entrepreneurs, Mr. Saito suggests that unlike their male counterparts languishing under pre-defined social pressure (climb the company ladder) women entrepreneurs have a greater degree of freedom to explore alternatives, take risks and be fearless.
International experience: According to the Ministry of Education the number of Japanese students studying abroad has declined for the past 8 years consecutively. In fact the total number of students studying abroad is 31% lower than it was in 2004.
International experience is critical to working with colleagues and customers outside of Japan.
How could Japanese firms not benefit from a more well-rounded workforce with broader perspectives? Mr. Saito suggests that going overseas really enables people to have context that a lot of Japanese actually live in their little own bubble and think that this is how the world works.
In summary, what improvments can be made in Japan to create a start-up friendly environment? Reviving a lost art, such as the art of teamwork, and integrating it at all levels, not just on the assembly line floor, next leveraging already existing assets such as the mindset of women entrepreneurs, encouraging them in their endeavors and assisting them in their venture, and finally the integration of international training into already existing training programs, all three are essential for a brighter future in Japan, and moving that all important GDP needle.