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2010 White Paper on Small and Medium Enterprises in Japan

The Small and Medium Enterprise Agency of the Ministry of Economy, Trade and Industry compiled reports titled “Trends among Small and Medium Enterprises in FY 2009” and “SME Policies in FY 2010” (“2010 White Paper on Small and Medium Enterprises in Japan”), which were approved by the Cabinet on April 27 and will be published.

1. Outline of “Trends among SMEs in FY 2009”

Chapter 1 analyzes the recent trends among SMEs and Chapter 2 analyzes measures for the further development of SMEs including new development under tightened domestic restrictions and taking in opportunities for growth overseas.

Chapter 1 : Recent Trends among SMEs

This chapter surveys the trends of SMEs in FY 2009 and analyzes the influence of the recession after the Lehman shock on SMEs in Japan.
- Though the conditions of SMEs seem to be getting better, improvement depends on the business type and scale of enterprises. In particular, financing and employment conditions remain severe and risks including deflation and the impact of a stronger yen are anticipated in the future.
- The Lehman shock had a serious impact on SMEs in Japan through both the decline of stock prices and the loss of export markets. The government has taken various measures to support SMEs and will take all possible measures to support SMEs focusing on financing and employment in the future.

Chapter 2 : Measures for Further Growth of SMEs

New development under tighter domestic restrictions

This chapter analyzes how SMEs grow while tackling various challenges under severe economic circumstances. Specifically, it analyzes how they maintain and develop the accumulation of small and medium manufacturers while the density of SMEs is declining, and how they cope with environmental and energy restrictions, and introduce new business in a era of an aging population with fewer children.

- As for the integration of small and medium manufacturers, the number of manufacturer workshops has suffered a large decrease. Accumulation includes enterprises that have high-level technologies and processes supporting the foundation of Japan’s manufacturing industry and those that take advantage of such strength to obtain orders from outside corporations. To enhance the competitiveness of Japan’s manufacturing industry, it is essential to assure collaboration among SMEs so that they can make full use of the particular advantages of individual enterprises.

- SMEs emit a little more than 10% of carbon dioxide arising from energy. They cannot afford to invest in new equipment for more energy saving, but are expected to approach further energy saving by adopting measures to support energy saving. In addition, by promoting green innovation taking advantage of their unique technologies, it is expected that they will help reduction of carbon dioxide emissions in Japan.

- As society is aging with fewer children, labor diversification including employment of more female and elderly workers is progressing in SMEs. For employment of various human resources, SMEs are making efforts to achieve an appropriate work-life balance. It is also important to prepare environment that supports the movement of human resources between different types of businesses so that necessary jobs are adequately allocated In addition, it is essential to promote innovations for life such as advanced medical technology and healthier food.

Taking in opportunities for growth overseas

This chapter also analyzes how SMEs take advantage of global economic development mainly in Asia for their own growth.

- In SMEs, labor productivity is improved after start of exporting or direct investment. When internationalization is planned, SMEs have many problems including securing the necessary information, human resources and financing. By supporting solutions to these problems, more growth opportunities outside of Japan can be taken. In addition, free trade will also be advantageous for SMEs and it is important to promote this.

2. Outline of SME policies in FY 2010

Policies to be taken in FY 2010 are described focusing on the following seven points: 1) to protect SMEs, 2) to assure employment, 3) to create business, 4) to enhance the attractiveness of SMEs and publicize this both inside and outside of Japan, 5) to enrich lives and regions, 6) to support revitalization and the challenging spirit of SMEs and 7) to prepare a system able to support business management.


Documents released (in Japanese)

- Overview of the report
- Full text of the report


*English documents will be ready soon.

Release Date

April 27, 2010

Division in Charge

Research Office, Business Environment Department, Small and Medium Enterprise Agency