Japan’s First Business Succession Contract Concluded under Collaboration Project between Support Center for Smooth Business Succession and Local Vitalization Cooperator
November 7, 2018
The Small and Medium Enterprise Agency
In June 2018, the Ministry of Economy, Trade and Industry (METI) and the Ministry of Internal Affairs and Communications (MIC) began a collaboration project between a human resource agency for business successors, an organization operated by respective Support Centers for Smooth Business Succession under METI, and Local Vitalization Cooperators under the MIC. This project aims to promote business-succession matching between SMEs or small enterprises that have no business successor and businesses that wish to succeed to such SMEs’ business. METI hereby announces that one business-succession matching succeeded in Miyazaki Prefecture. On November 9, 2018, a signing ceremony for business transfer will be held at the Town Hall of Kawaminami Town, Miyazaki Prefecture. This is Japan’s first contract concluded taking advantage of this collaboration project.
1. Outline of the Support Centers for Smooth Business Succession
In FY2011, the Small and Medium Enterprise Agency (SMEA) under METI began a project for supporting SMEs in business succession, in which SMEA provides SMEs with opportunities for receiving consultation or advice concerning M&A, aiming to support businesses with no successor in succeeding their business to a third party. Since then, SMEA has established Support Centers for Smooth Business Succession in all 47 prefectures across Japan by the end of FY2016. These centers have been providing SMEs and small enterprises that have no successors with business-succession matching opportunities with businesses that wish to become a successor to such SMEs’ business. Between FY2011 and today, the number of contracts concluded under this project came to about 1,800.
2. Collaboration with an MIC project
In FY2018, METI and MIC started a collaboration project between the Support Centers for Smooth Business Succession project and the “Local Vitalization Cooperators” project operated by MIC, an effort for stimulating people’s mobility from urban to rural areas in which about 5,000 cooperators have been registered across Japan. Triggered by a kick-off event held in in Shizuoka, titled “Shizuoka Succession Forum,” on June 29, 2018, the ministries embarked on the collaboration project for supporting SMEs and small enterprises that are suffering from absence of successors in having business-succession matching opportunities with Local Vitalization Cooperators, businesses that are interested in succeeding to such SMEs’ business.
3. Japan’s first contract concluded under the collaboration project
METI hereby announces that one business-succession matching succeeded between a retailer in Kawaminami Town, Miyazaki Prefecture, and a Local Vitalization Cooperator, a business that is willing to vitalize the town and succeed to the business of the retailer and has moved from a city to the town. This is Japan’s first contract concluded under the collaboration project for business succession of the retailer, a supporter of people’s lives in regional areas, taking advantage of the support measure by the Miyazaki Support Center for Smooth Business Succession. This successor is expected to be settled in the town and to make a contribution to further vitalizing the town.
4. Signing ceremony for business transfer
On November 9, 2018, a signing ceremony for business transfer between the retailer and the successor will be held at the Town Hall of Kawaminami Town, Miyazaki Prefecture, bringing together the vice mayor of Kawaminami Town, the chairperson of the Kawaminami Chamber of Commerce and Industry and other stakeholders.
5. Outline of the ceremony
Title: Signing ceremony for business transfer
Date and time: November 9 (Fri.), 2018; from 11:00 (tentative)
Venue: Reception office, second floor, Town Hall, Kawaminami Town (13680-1 Kawaminami, Kawaminami Town, Koyu County, Miyazaki Prefecture)
Organizer: Miyazaki Support Center for Smooth Business Succession
Co-organizers: Kawaminami Town and Kawaminami Chamber of Commerce and Industry
Division in Charge
Corporate Finance and Tax Affairs Division, SMEA