Contest for Japan's Economic Future

Introduction

Just as a wave of entrepreneurship created Japan's postwar "economic miracle," so it will take a new generation of entrepreneurs to revive its stagnant economy.

Distribution System Challenges

A complex distribution system dominated by the incumbents has made it hard for newcomers even to get their products on store shelves.

Opportunities for Change

Fortunately, major social changes are now opening new opportunities. Generational changes in attitudes about work and gender relations are leading more and more talented people to the new companies. This includes ambitious women who are regularly denied promotions at traditional companies.

Impact of E-commerce

The rise of e-commerce is enabling tens of thousands of newcomers to bypass the traditional distribution system and sell their products to millions of customers.

Economic and Social Shifts

Three decades of low growth have convinced many within both the elites and the public of the need for change. Still, progress remains an uphill climb because of resistance by powerful forces.

Financial Barriers

Bank financing remains quite difficult. For example, the system of "lifetime employment" has made it very hard to newcomers to recruit the staff they need. Banks, who are often in the same sprawling conglomerates as the corporate giants, are still loath to lend to new companies.

Government and Regulatory Environment

While parts of the government try to promote more startups, other parts resist making the needed changes in regulations, taxes, and budgets.

Conclusion

Japan's economic future will be determined by the contest detailed in this book.