In 2000-2009, Japan recorded one of the lowest rates of entrepreneurial activity amongst the world’s leading nations. Entrepreneurs face many difficulties when starting their own ventures. Some of these difficulties include receiving loans from banks, the pressures of deflation, weak domestic demand, and tough competition within the country.

In Japan, personal guarantees are required for small business loans. There is a high rate of suicide among Japanese men who fail to repay personal guarantees. The reasons for these suicides are the shame when the business fails and the need to use life insurance funds to pay off debts so that the banks will not harass friends and relatives who have given their guarantees for the loans/debts. This shows their cultural desire to “save face.”

Most Japanese entrepreneurs are of the post-war era. The newer generation has not yet fully adapted to the idea of entrepreneurship. Another problem that stunts the growth of entrepreneurs is the lack of knowledge. Many Japanese entrepreneurs do not have the knowledge, training or motivation to start their own businesses. Classes are being started where those interested in entrepreneurial activity may enroll. These classes have given rise to the idea of what is known as “weekend entrepreneurship,” when people with regular, salaried jobs use their talents and hobbies for profitable ventures on weekends. 

Due to the economic downturn that started in the 1990s, the Japanese government, as one of the key mechanisms to improve the economic condition, has promoted entrepreneurship.  However, the lifetime employment and seniority-based wage system are major factors impeding Japan from becoming a truly entrepreneurial society.  Though several policies have been implemented to promote entrepreneurship, very little change has occurred.

Japan Entrepreneurship Articles

Japan Entrepreneur Report
Entrepreneur Association of Tokyo
Japan’s Entrepreneur Face Rough Road
VC Report: Firms Look beyond the Clouds
Japan External Trade Organization (JETRO)
Japan Inc. Magazine
Business Incubators in Japan open to the WORLD
Japan Entrepreneur Report
Japan Internet Report
Japan Registry registers Japanese JP (.JP) and CO.JP (.CO.JP) domain names.
Japanese Bilingual jobs. Work in Japan. Daijob.com
Jobs in Japan. Work in Japan.
Keizai Koho Center
Keizai Society: US Japan Business Forum
Mike Mansfield Foundation
Japan Young
A New Set of Social Rules for a Newly Wireless Society
A Travel entrepreneur challenges the Big Three
A Venture Success Story from Japan? Yes?
Access to the Japanese Markets
Brief comparative overview of venture capital firms in Japan and the U.S.
Can Japan Compete? Part One
Can Japan Compete? Part Two
Chinese entrepreneur challenges myths of Japanese "business culture"
Don't Stifle Your Entrepreneurs Japan
Economic Revitalization: Corporations and Investors Positions Themselves to Compete in the New Japan
Entrepreneurship in ASIA
Exit Strategies East and West
Good News Vultures Are Circling Japan
How a Banana Saved a Company
How Private Individuals Created Modern Japan
How to evaluate the number of "Internet users" in Japan
Inside the Japan Venture Capital Association
International Entrepreneurs Meetup Day -- Join other Entrepreneurs near Tokyo, Japan
Internet and Entrepreneurship in Japan
Interviews - Takehiko Ono
It's tough being an angel in Japan
A new entrepreneur magazine..in Japan?
Japan Media Review - Q&A with Tim Clark from Japan Internal Report
Japan needs more entrepreneurs to change the structure of society
Japan Seeks Entrepreneurial Infusion - Turns to U.S. Educators
Japanese Education and the Internet
Japan's Busy Net Builders...And Two New Net Incubators
Japan's entrenched xenophobia is its downfall in the New Economy
Japan's entrepreneurs face rough road
Japan's Generation of Computer Refuseniks
Japan's ranking in an entrepreneurial world
KENTUCKY FRIED CHICKEN IN JAPAN-A CASE STUDY
Entrepreneurship in Japan: Moving toward a New Innovation System? Lecture
Japanese Society and Entrepreneur Development
Entrepreneur Association of Tokyo
Nothing Ventured, Nothing Gain: Sustaining Entrepreneurship in Japan
Number of Internet Users (As of January 31, 2003)
Popular perceptions of entrepreneurship in Japan
Should Japan Fight Inflation?
Size of native English speaker submarket in Japan
Succeeding amid Japan's recession
The Very Small Foreign Entrepreneur in Japan
Three kinds of companies
University-Industry Relations and Entrepreneurship in Japan: Moving toward a New Innovation System?
Wired 1.05: The Comeback of Japanese Software Entrepreneur Kay Nishi
Woman's Entrepreneurship in Japan: Present situation and Policy

Source: International Entrepreneur