A Japanese Entrepreneur called John Doe
“Listen, we do business with established companies. Please come back after 3 years and tell us which companies use your services.”
This is what early-stage entrepreneurs are normally told when they make a visit to large Japanese companies. No matter how great their services or products may be, large Japanese companies are generally not in favour of using start-up companies.
Becoming a John Doe
Not matter which large company you worked for or what high position you held, you become John Doe the moment you leave the company and start your own business. A female entrepreneur recalled the early days in her own business saying: “My previous colleagues treated me like a stranger when I contacted them about my new business. They did not even want to meet me.” A Japanese gentleman who had just started his own business said: “My friends have stayed away from me since I started my own business.” He continued: “They assume I may ask for their money, which is completely wrong.”
Unpopular John Doe
The John Doe is not popular among financial institutions. Large Japanese banks are not willing to lend money to start-ups until the business is proven to generate profits. National Life Finance Corporation offers business loans for stat-up companies, but its interest rate for start-up loans without collateral is a little higher (standard rate plus 1.2%) than those for small business loans. Likewise, Japanese venture capitals are inclined to invest in ventures after the business model is proved to be successful.
A John Doe company is not popular among job applicants either. Start-up companies require their employees to work very hard, but they cannot pay them very much. Especially in tight labour markets, large companies have the advantage of being able to offer higher salaries then start-up companies when trying to attract labour.
The Tipping Point Magic
However, the tipping point can change the situation completely. Successful Japanese entrepreneurs say that once they have even the smallest chance to demonstrate their products or services to customers, it is very easy to expand their business. The entrepreneur is not John Doe anymore. The entrepreneur’s name is everywhere; in newspapers, in magazines and on the web.
“I felt rewarded after going through such a hard period”, said a famous Japanese entrepreneur. “It is neither the fame nor the financial reward. It is the feeling of achievement after going through these hardships. You never experience this feeling unless you run your own business.”
April 16 2008 02:52 pm | Economy and Weekly Articles
