Japan Direct Research

Foregin Entrepreneurship in Japan

Being an entrepreneur is very tough. Living in Japan is not easy for foreigners. But, I met several foreign entrepreneurs who open the door of the Japanese market and bring in new products and services, which Japanese have never thought of.

How do they do that?

That’s what I was trying to figure out in my dissertation research.

I wrote a paper, titled “Foreign entrepreneurship in Japan - attitudes and characteristics of entrepreneurs and their firms” for my MBA dissertation last year. It investigated foreign entrepreneurship in Japan in light of: characteristics and attitudes of lead entrepreneurs, characteristics and behaviours of newly created firms (organizations), and the perceived business environments that surround the lead entrepreneurs and the new
firms.

Conclusion - Foreign entrepreneurs in Japan hold a unique position for economic activities in Japan. Foreign entrepreneurs play a role from a global perspective in connecting the Japanese market to markets outside Japan. Like entrepreneurs in general, foreign entrepreneurs are predisposed to entrepreneurship. At the same time, they have to be flexible in adapting their behaviours and attitudes to the Japanese business environment while coping with changes in the business environment in Japan.

There are issues, but…
One main issue for foreign entrepreneurs looking for growth in their businesses is dealing with the risk averse nature of Japanese society. In particular, foreign entrepreneurs encounter risk-averse events in business relationships with Japanese corporations, as well as when hiring Japanese employees.

However, being a “foreigner” is still an advantage for foreign entrepreneurs doing business in Japan, as it gives them an excuse to break Japanese business customs. New business approaches as such can be the stimulus of the Japanese economy in promoting the innovation and creation of new businesses in Japan, as well as expanding them to become one key force of the global economy.

Lastly, I thank all of the entrepreneurs who participated in my interviews and online surveys. Now, I can graduate from school