The Plight of SMEs in Japan and China Capital Opportunities

Government of Japan through the total size of 5.09 trillion yen (about 63 billion U.S. dollars) in fiscal 2010 supplementary budget. Supplementary Budget, the fiscal expenditure to determine the scale of the economic stimulus than the previous plan to increase by 400 billion yen.

Prior to the October 8, the Japanese government introduced a scale of fiscal expenditure of approximately 5.05 trillion yen economic stimulus package, hoping to promote employment, expand domestic demand and promote economic growth and appreciation of the yen should stop the decline in the Japanese economy.

But the problem is not the Japanese economy stimulus package to save. During the ten years after the economic downturn, but also suffered the impact of the global financial crisis, high unemployment rate coupled with the long-term higher yen makes Japanese economy even worse. Japan, SMEs account for 99.7% of total number of enterprises, employment in small and medium enterprises in Japan total employment up to 80% or more. To this end, the Japanese Government hopes to increase employment by promoting small and medium enterprises, but the reality is quite effective micro. The government has actively encouraged the policy, the Japanese SMEs are still not out of the financial crisis, poor management and corporate bankruptcies have become commonplace.

In addition to poor macro-economic environment, Japanese SMEs also face a more difficult dilemma of human resources.

The first is the shortage of labor. According to statistics on SMEs in Japan White Paper, the Japanese small and medium business people need priority of 34% for the marketing staff, technology, research and development personnel 26%, financial, tax 17%. However, wage levels, working conditions and welfare benefits, compared to large enterprises, SMEs are there is a big disadvantage. Therefore, a serious shortage of qualified personnel for SMEs. Japanese SMEs in particular, the current serious shortage of those who can not have actual combat, but has a future, guiding, information gathering capabilities of the personnel.

Followed by the aging of the population, corporate successors. Business owners in Japan in 1985, the average age of 53 years and 1 month, and by 2004 the average age of entrepreneurs has risen to 58 years and 6 months. In the 60’s to establish small and medium enterprises, the current period have been to a heritage. However, due to a large number of minority carriers to small business owners to retirement age, despite the delay in or out of position. Important reason is that no suitable successor candidate. Therefore, some business owners had to close or sell businesses. Entrepreneurs Another problem of aging is due to the aging of key decision makers so that enterprises lack vitality and spirit awareness, some companies this is being eliminated.

Everything has two faces. We must see that, although faced with difficulties, but the industrial base of SMEs in Japan. As of 2009, the Japanese company about 6 million, of which 99% were SMEs. The manufacturing sector accounts for about 70% of SMEs in Japan. Firm size is small, but very solid technology and manufacturing capabilities, we can say that the Japanese small and medium quality. Every small business has its own unique technology and quality, large-scale production of small and medium enterprises are only parts of the overall portfolio only.

Japan’s small and medium enterprises on the one hand has a strong manufacturing capability to produce products always maintain a high standard of the world. At the same time, due to the high development of digital technology, the Japanese bubble economy burst in the third round of economic restructuring, and growth of a number of high-tech SMEs, accounting for about 20% of SMEs in Japan.

These small businesses have the technology and unique manufacturing capabilities, it is currently lacking in China. Can say that the difficulties faced by SMEs in Japan, is now the capital of China have the opportunity to sea.

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Category: Business
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