“Case Examples of Overseas Business Restructuring for Small and Medium-Sized Enterprises (for Stable Continuity of Business)” was Compiled
While overseas expansion (direct investment) by Japanese small and medium-sized enterprises (SMEs) has been accelerating, many of those that have already expanded overseas have undertaken business restructuring (such as reduction of business, pullout, or transfer to a third country), and the number of such cases is increasing.
In response to these circumstances, the Small and Medium Enterprise Agency (SMEA) collected and examined examples of Japanese overseas affiliates that have made efforts to restructure their businesses in order to overcome challenges facing overseas businesses, compiled and introduced a series of primary reference points for restructuring overseas businesses, and issued the report “Case Examples of Overseas Business Restructuring for Small and Medium-Sized Enterprises (for Stable Continuity of Business).”
1. Primary reference points for restructuring overseas businesses
In addition to feedback from SME managers who have had experience restructuring overseas businesses or are now considering business restructuring, SMEA compiled advice from experts such as lawyers, accountants, and consultants who have knowledge of legislative systems, accounting systems, and practical business in Japan and abroad into “Primary Reference Points for Restructuring Overseas Businesses.”
2. Examples of overseas business restructuring (table of individual enterprises)
Twenty-eight specific case study examples of business restructuring were introduced.
3. Understanding overseas business restructuring trends with data
SMEA analyzed the current status of SMEs regarding their overseas expansion, and described the status of their overseas business development, the issues surrounding operating businesses overseas, and trends in business contraction and pullout.
(Fig. 1) Status of overseas affiliates owned by SMEs
Trends in the number of Japanese overseas affiliates, and percentage of Japanese overseas affiliates whose parent company is an SME
Source: Re-edited and processed data from “Survey of Overseas Business Activities” by the Ministry of Economy, Trade and Industry
(Fig. 2)SMEs that have had experience pulling out from regions where they had directly invested or are considering a pullout
SMEs that have had experience pulling out from regions where they had directly invested or are considering a pullout
Source: Re-edited and processed data from Sompo Japan Nipponkoa Risk Management ’s “Questionnaire Survey for Ascertaining Current Status of SMEs” (December 2013)
June 16, 2015
Division in Charge
Office for Overseas Business Support, Startup and New Business Promotion Division, Business Support Department, Small and Medium Enterprise Agency