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The Contest for Japan's Economic Future: Entrepreneurs vs Corporate Giants
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. A complex distribution system dominated by the incumbents has made it hard for newcomers even to get their products on store shelves.
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. 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. 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. 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. While parts of the government try to promote more startups, other parts resist making the needed changes in regulations, taxes, and budgets.
Japan's economic future will be determined by the contest detailed in this book.
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. 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. 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. 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. While parts of the government try to promote more startups, other parts resist making the needed changes in regulations, taxes, and budgets.
Japan's economic future will be determined by the contest detailed in this book.
- GenresJapanEconomicsNonfiction
356 pages, Hardcover
Published December 27, 2023
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Displaying 1 - 3 of 3 reviews
December 18, 2025
Dust jacket hardcover
This book covers:
The Retooling of Japanese economy during the so called lost decade
Shinzo Abe and his 3 arrows. It talks about how he followed through with monetary policy but not fiscal policy (which was previously wasted ơn infrastructure but never really spent for universal education) or structural reform (which was avoided like the plague despite him having a 2/3 majority)
Women managers are not named Kacho (manager) often in elephant firms, so they flee tô gazelle firms. They are divorcing more for individualistic reasons Im a generational shift, because it is more acceptable to act ơn these desires now.
The vertical Keiretsu is a major blockage tô gazelle growth. Sometimes, it’s easier for a gazelle to succeed as part of a Keiretsu rather than independently
PE were called vulture firms in Japan, but still extract value from SMEs, instead of the SMEs just closing down
Gazelles would invest more in R&D but Japan favors tax credits instead of an R&D Subsidy, which ends up benefitting thể elephants.
Gazelles are also charged higher interest rates in comparison to the elephants. Entrepreneurs are discouraged from starting their own companies because of the onerous business and personal bankruptcy laws that discourage the talented from taking the leap.
Elephants dominate the Japanese economy and are favored by policy
Bank of Japan’s holding of Japanese Government bonds at 0% interest
This book covers:
The Retooling of Japanese economy during the so called lost decade
Shinzo Abe and his 3 arrows. It talks about how he followed through with monetary policy but not fiscal policy (which was previously wasted ơn infrastructure but never really spent for universal education) or structural reform (which was avoided like the plague despite him having a 2/3 majority)
Women managers are not named Kacho (manager) often in elephant firms, so they flee tô gazelle firms. They are divorcing more for individualistic reasons Im a generational shift, because it is more acceptable to act ơn these desires now.
The vertical Keiretsu is a major blockage tô gazelle growth. Sometimes, it’s easier for a gazelle to succeed as part of a Keiretsu rather than independently
PE were called vulture firms in Japan, but still extract value from SMEs, instead of the SMEs just closing down
Gazelles would invest more in R&D but Japan favors tax credits instead of an R&D Subsidy, which ends up benefitting thể elephants.
Gazelles are also charged higher interest rates in comparison to the elephants. Entrepreneurs are discouraged from starting their own companies because of the onerous business and personal bankruptcy laws that discourage the talented from taking the leap.
Elephants dominate the Japanese economy and are favored by policy
Bank of Japan’s holding of Japanese Government bonds at 0% interest
March 5, 2025
As a former U.S. Ambassador to Japan, I have witnessed firsthand the dynamic interplay between Japan’s entrepreneurial ventures and its established corporate giants. “The Contest for Japan’s Economic Future: Entrepreneurs vs Corporate Giants” offers a compelling analysis of this relationship, shedding light on the challenges and opportunities within Japan’s evolving economic landscape. The book provides valuable insights into how innovation and tradition coexist and compete, shaping the nation’s path forward. It’s an essential read for anyone seeking to understand the forces driving Japan’s economy today.
September 6, 2024
During my stay in Japan, I found the workings of the economy to be elusive. Despite what my professors taught me, some aspects just didn’t add up. This book provided the clarity I was missing, offering insights that go far beyond the romanticized view of the Japanese economy. I highly recommend it to anyone interested in understanding how Japan’s economy developed, grew, and ultimately faced stagnation over the past three decades. The book also covers interesting solutions to make the Japanese market competitive again.
Displaying 1 - 3 of 3 reviews