2022 White Papers on Small and Medium Enterprises and Small Enterprises Released

1. Characteristics of the 2022 White Paper on Small and Medium Enterprises in Japan and the 2022 White Paper on Small Enterprises in Japan

The 2022 White Papers analyze trends among SMEs and small businesses, which are facing various challenges including the spread of COVID-19, crude oil and raw material price hikes, and other external influences. They also analyze initiatives that these businesses must implement in order to take on new challenges and transform themselves. Additionally, they touch on examples of businesses whose activities exemplify the aforementioned points.

2. Key points in the reports

Overview

• The business environment surrounding SMEs and small businesses continues to be harsh, due to the COVID-19 outbreak that has continued for two years as well as supply-side limitations such as crude oil and raw material price hikes, difficulties in sourcing materials, and human resource shortages.

SMEs' responses to COVID-19

• Businesses need to restructure to secure continuity and move toward subsequent growth. Some companies are realizing the impact that restructuring has on their sales and the synergy in their existing businesses.

Management capabilities and organizations that drive company growth

• This round of white papers focuses on investments in intangible assets—such as brand building and investing in human capital—that can drive growth for SMEs.
• When a company is building its brand, it must clarify its brand concept and make sure employees understand it thoroughly.
• When a company is investing in human capital, it is important that managers actively carry out planned, on- and off-the-job training to develop human resources.

Small businesses making business revisions and solving regional issues

• Small businesses are actively taking steps to revise their businesses, but they face various challenges when doing so. Support organizations play an important role in these situations.
• When solving regional issues, small businesses collaborating with other companies need to utilize support organizations' networks and know-how.

A shared foundation of fair trade and digitalization, and accompanying support for restructuring management capabilities

• Fair trade is necessary for more than just responding to cost fluctuations—it is also needed to ensure appropriate capital distribution in SMEs such as raising wages. Creating opportunities to negotiate with purchasers is important for pass-through.
• Companies must work to further their digitalization and aim to reach a point where they can establish new business models.
• In order for managers to proceed with internally implemented transformation, they must establish management goals by discussing them with support organizations. For this to happen, third-party supporters and support organizations should build relationships of trust with managers and provide assistance through interactive communication.

Related materials

• 2022 White Paper on Small and Medium Enterprises in Japan (Outline)(PDF:67KB)
• 2022 White Paper on Small Enterprises in Japan (Outline)(PDF:66KB)

Related links

• White Paper

Division in Charge

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