There has long been an opinion that our compatriots should immediately dismiss the idea of starting their own business in Japan - supposedly it is very difficult for a Russian person to open a company in this country. In part, this statement is true: Japan is a small country, and its market has long been divided among “their own” (that is, the Japanese). It will also be difficult for a foreigner to wedge in there due to the fact that the Japanese are extremely wary of people of non-Asian appearance.
However, despite all this, there are quite a few examples from business practice when Russian people started doing business in Japan and did it very successfully. If you are thinking about opening your company abroad, and Japan is a priority country for you in this matter, then this article is for you.
Small business in Japan
Small and medium enterprises in Japan play a crucial role in the country's economy. There are very few state-owned enterprises in Japan, so almost the entire economy is kept only thanks to private entrepreneurs.
Japan is a vivid example of how it is possible to perfectly combine small and large in one country. medium business. For example, in Japan, small businesses deal with the construction of residential buildings, while medium-sized businesses deal with office centers, high-rise buildings, buildings for large industrial enterprises etc. Another example can be given from the transport industry: a small business works on freight transportation, and a medium business works on taxi fleets and bus enterprises.
How to open a company in Japan
In Japan, as well as, there are several organizational and legal forms of enterprises. We will not describe them all, we will give only the most common ones and those that are most suitable for registering a company for a foreigner. These are a limited liability company (Yugen Kaisha), a joint-stock company (Kabushiki Kaisha) and a branch of a company that is territorially separate (may be located in another country, Branch office). Japanese law does not imply any restrictions or specific conditions for an entrepreneur who decides to open a company on the territory of this country. Which, of course, simplifies the entire procedure for registering a business. However, there are still some features that you need to know about in advance.
When choosing between two forms - a limited liability company and a joint-stock company - entrepreneurs most often start from their financial opportunities. To register a joint stock company, you must have a starting capital of at least 10 million Japanese yen. But 3 million yen is enough to register a limited liability company. If you do not pay attention to financial question, otherwise it is more profitable to open a joint-stock company. To joint-stock companies, both closed and open types, the state of Japan is more loyal. It has created for such companies especially profitable terms financing and limited the liability of the founders only within the limits of their personal shares, and the public treats joint-stock companies with the greatest confidence. A joint stock company must have at least three directors.
To open a branch, of course, you must already own the parent company, the subsidiary of which will be opened. There are no restrictions in terms of the minimum start-up capital when opening a branch. Another plus in opening a branch in Japan is that there is no taxation of such companies. To open a branch, it must be registered with the Bureau of legal matters. The person who manages the subsidiary does not need to be a Japanese citizen. For other forms of enterprises (including both joint-stock companies and limited liability companies), installed system taxation. Mandatory internal audit is present only in joint-stock companies both types.
To greatly simplify the entire process of collecting and processing required documents to open a company, many entrepreneurs prefer to hire Japanese specialists in this matter, who accompany them throughout the paperwork. An accountant, lawyer or auditor can act as such an escort. The first step will be to compile following documents: founding document, list of founders and registration document. We add a notarized seal application to these documents, and submit the entire package of documents to the appropriate body involved in the registration of new companies. A seal certification can only be issued to a Japanese citizen or a foreigner who holds a tourist or business visa. If you are neither one nor the other, then the certification will be issued to you only after all documents are sealed with your signature and the signature of a notary in your home country.
Don't worry about not knowing Japanese. Of course, language skills will only be an advantage for you, but now in Japan, many documents and cases are conducted in English language. When choosing a lawyer who will draw up your documents, also give preference to those who are fluent in English.
What kind of business can you do in Japan
If we talk about small business, then the most profitable areas are the production of clothing (in particular, kimonos). Also, a good profit can be brought by an enterprise for the production and sale of mats (straw products used for various purposes). If you are heading for a larger business, then we advise you to pay attention to the transport and construction industries.
Retail trade in both food products and various other goods is in demand in any country. And Japan is no exception. The main thing is to carefully analyze the market of the product you plan to trade, and find out where and how best to do it.
Small Business Support in Japan
Small business is extremely important for the Japanese state, so it tries its best to support and develop it. Japan has a law prohibiting any large enterprise become a monopoly in their industry. The antimonopoly department is authorized to monitor compliance with this law. If the rights of a small business have been infringed in any way, then the Small Business Administration will deal with the situation.
In matters of financing small businesses, they most often turn to large banks that provide various programs and benefits for financing. Receives benefits for small businesses in relation to the purchase and modernization of equipment, restoration industrial premises or other structures.
Almost ten years ago, a law was passed allowing you to open your own business in Japan without starting capital (according to the documents, the starting capital will be 1 yen). In this case, only a few conditions must be met. At the initial stage, it is necessary to certify the constituent and statutory documents in a special bureau for economics, industry and trade. If permission has been obtained, but such a company undertakes to regularly publish reports on its financial condition and comply with all conditions regarding the amount of start-up capital. If, after five years, the company still does not have available funds in the amount of the required start-up capital, then the company will either be forcibly closed or transferred to another organizational and legal form.
Corporate taxation in Japan
If you understand the Japanese taxation system well, it becomes clear that it is quite transparent. The main taxes are as follows: general income tax of a branch or corporation - 22-30% (depending on the profit of the enterprise), local income tax - 20.7% of the total tax, business tax - 9.6% of the profit. Mandatory financial reporting and other reporting on their activities applies to absolutely all enterprises in Japan.
In Japan, the development of small business has its own specifics. Here, small and medium-sized firms are important element economy along with large powerful corporations. There are about 7 million small and medium-sized enterprises that employ over 40 million people (approximately 80% of the total number of employees). Small and medium-sized enterprises account for about 60% of industrial output. These enterprises occupy a dominant position in such industries as the clothing, footwear, haberdashery industry, the production of components and structures, construction, the service sector (including maintenance of equipment), etc. Japanese small businesses are characterized by a widely developed subcontracting system, where small and smallest enterprises receive and fulfill orders from large firms - machine building, aircraft building, automotive, etc.
There are four centers for regulating and stimulating small and medium-sized enterprises:
Central government;
Local authorities;
Big business;
Independent small business associations.
Through the central government, small businesses are handled by the Small Business Administration within the Ministry of Foreign Trade and Industry. Both central and local governments stimulate the formation and development of small businesses through loans, credit guarantees, tax incentives, training, and easier access to information. In addition, non-refundable financial assistance is provided to small businesses only for the implementation of scientific and technical programs, such as:
Raising the technical level of production;
Improving production technology in the food industry;
Development, together with universities and state research institutes, of new science-intensive equipment and technology.
The latter program is funded by local governments, the former by the central government, and the former by both.
Much wider, at a preferential interest, loans are provided for the implementation of the following projects:
Development of new types of products and new technology (financing from local authorities);
Development of new types of production and technology (through the central government);
The revival of small enterprises for the development of the economy of individual regions (through the central government);
Promoting industrial and technical cooperation between small businesses (also through the central government).
The Small Business Finance Corporation of Japan plays an important role in providing financial assistance to small and medium-sized enterprises. It provides such enterprises with long-term loans (more than a year) on preferential terms to increase fixed and working capital.
The National Financial Corporation of Japan specializes in lending to small and smallest companies. With a huge network of chambers of commerce and industry (more than 500 in the country), it annually issues loans in the amount of almost 500 billion yen.
In Japan, there is another specialized institution - the Soko-Chukin Bank, which finances the activities of cooperatives, small and medium-sized enterprises, as well as their individual chips.
Finally, to finance special priority programs in the field of structural adjustment of small and medium-sized enterprises, protection environment, the development of energy-saving industries, the above-mentioned Small Business Finance Corporation and the National Finance Corporation issue loans on even more favorable terms.
The state guarantees and insures loans to small and medium-sized enterprises through the so-called Supplementary Public Lending System. This System ensures the flow of capital from commercial financial institutions to small and medium-sized businesses.
An important link in the financial support of small and medium-sized enterprises are loans and credits provided for specific assistance to enterprises that find themselves in a difficult financial situation due to objective factors.
Thus, comprehensive state support for small business at different levels has been created and is functioning in Japan.
Small business in Europe. In European countries, the interests of small businesses are usually represented by special divisions or departments within the Ministry of Economy or the Ministry
trade and industry. For example, in Great Britain, a “Small Business Service” was created under the Ministry of Trade and Industry. It assists small entrepreneurs in starting their own business, obtaining loans, concluding agreements and contracts, training personnel and advising small businesses. This Service has local branches throughout the country. According to G. Danishevskaya, only in 1988-1989. it provided about 30,000 consultations. During the same period, the Service maintained contacts with 266,000 small British firms.
Much attention in the UK is paid to the training of personnel for small and medium-sized businesses. The following university business schools are considered the most prestigious in this area: in London, in Manchester, Glasgow, Durham and Warwick. In them, for 16 weeks, students study the general problems of the economy and the basics of creating their own business. More than 200 people graduate from these schools every year.
The German government began to provide broad support to small and medium-sized enterprises immediately after the end of World War II. As early as 1948, the Bank of Credit Guarantees was established in Germany to manage the funds received for the reconstruction of Europe under the so-called Marshall Plan. At the same time, regional credit corporations were also created. Over the period of its existence, this system has provided small and medium-sized entrepreneurs with more than 100,000 guarantees totaling about 10 billion marks. Thanks to such strong guarantees, commercial loans, leasing contracts and venture capital financing totaling 14 billion marks were realized.
After the unification of the eastern and western lands of Germany in order to revive small businesses in the territory of the former GDR, the German government outlined and is implementing the Federal Program for Subsidizing Small and Medium-Sized Firms in order to increase their share of their own funds.
It is interesting to note that in Germany since 1976 there has been a special provision regulating the participation of small and medium-sized firms in the execution of government orders. If small firms consider themselves bypassed in the division of THREE orders, then they can file a complaint with the appropriate authorities at the federal and local levels.
An important part of the program of assistance to small and medium-sized entrepreneurs is the training of personnel, which is carried out through the system of chambers of commerce and industry, which regularly organize seminars for beginner entrepreneurs.
Businessmen have heard a lot about Japan, and much of what they heard was both fascinating and confusing at the same time. I want to speak frankly about Japan, discuss some of the myths that mislead Western businessmen, and briefly outline what underlies some of the strategic successes of Japanese companies on the world stage. Keep in mind that we will be looking at relatively large corporations; small companies can rarely compete successfully in the international market.
There are four fundamental differences between Japanese and Western business systems. Let me formulate them as simple statements:
- The concept of a corporation in Japan is fundamentally different.
- For a Japanese businessman, a company is, first of all, people.
- The state in Japan plays the role of an assistant, not a dictator.
- The central idea of Japanese business strategy is to change the battlefield.
Before World War II, Japan copied Western corporate system- capitalists and workers, haves and have-nots. Big capitalists appeared at the end of the 19th century. as a direct result of the Meiji government's desire to catch up with the powerful Western countries.
Most of them, including the five famous zaibatsu - Mitsubishi, Mitsui, Sumitomo, Furukawa and Yasuda, one way or another, at a very low cost, took over state-owned textile factories, copper mines, shipbuilding and metallurgical plants, etc. In those days, Japanese companies operated in exactly the same way as most Western enterprises after the industrial revolution; in other words, the rich got richer and the poor got poorer. The workers, mercilessly exploited and deprived of any job security, participated in the traditional organizing rituals. The communists were very active and the companies were under constant threat of strikes demanding better working conditions.
Most Western analysts consider the existing corporate system in Japan with its unique features- lifelong employment and obedient trade unions - the result of ancient cultural traditions. In fact, this system was born in the period of post-war devastation. There were hardly any jobs then. Factories and plants were burned to the ground. The money was worth nothing, and inflation was over 100% a year.
The capitalists - the Big Five, as well as many small companies - were liquidated as a result of the zaibatsu kaitai policy, because General MacArthur was convinced that it was the military-industrial complex that pushed Japan into war. There was practically nothing with which to start a business.
Luckily, the technology formerly used to build tanks, planes, and warships remained in the minds of the engineers, and some engineers teamed up with a handful of pre-war zaiba-tsu managers to open small factories to produce rice cookers, clothing, and other necessities. These enterprises hired skilled workers, but there was no money for wages, so most employers paid with food, which in those days was more important than money. These nascent companies were more like village communities than corporations. People lived together, worked and overcame difficulties. If someone tried to organize a company and manage it in the old way, i.e. to exploit the hungry workers, ruthless strikes began. It is not surprising that at that time the Japanese preferred - albeit briefly - to live under socialist rule. To be honest, people would welcome any regime that promised them food. Over time, some of these communities achieved some success in the production of consumer goods for the population and hardware for the occupying troops. But their future looked very uncertain until the Korean War began.
Suddenly, they were forced to produce their goods in huge quantities. They received generous profits and immediately invested them in the expansion of production, paid salaries to the inhabitants of the community, who, accordingly, turned into hired workers receiving a monthly salary. From this point on, the story is well known. The Japanese enthusiastically took their savings to the banks, which in turn lent money to companies that wanted to grow and expand rather liberally. Despite the rapid growth, most companies have retained both the original inhabitants of the community as their founding fathers, and the mentality of the village community, which prevailed in the early days of their activities and has remained virtually unchanged to this day. Long before creation political parties Apart from national unions, these community members organized into small corporate unions to ensure better communication with company management and fair profit sharing. Even today, the election of the leader of such a corporate union is considered a good start for a young aspiring worker, helping him to climb the corporate ladder. All these circumstances had a profound effect on the Japanese corporate sector, and they are often cited by modern analysts as the main reasons for the success of Japanese business. Some even try to copy the features of our system. But the Japanese concept of a corporation, based on the idea of a village community, is fundamentally different from the Western model, which considers shareholders to be the real owners of the company, and employees only hired force.
In the Japanese view, a company is a group of people where everyone is a chain, or partner (not an employee).
Shareholders are a group of wealthy and interested persons, or creditors. Like banks, they are just another source of capital, and their goal is to make money from the collective wisdom and hard work of the corporation. When asked what they consider to be their main responsibility, many Japanese company executives answer that they work for the well-being of their people. Shareholders rank slightly higher on their list of concerns than bankers. H
In fact, in Japan, most CEOs work on almost the same terms of employment as factory workers. At one time, they went through the standard path up the corporate ladder: they joined the company when they were just 20, then joined the union, at the age of 35 they became katyos (heads of departments), etc. Predominantly institutional ownership of shares and a relatively undeveloped stock market can explain only from this historical point of view.
Significantly, Japan's famous "system" of lifetime employment, seniority-based promotions, and accommodating corporate unions is a consequence of the post-war community development rather than some preconceived strategy. And the point here is not in the ancient cultural heritage, but in the pragmatism and efficiency of the institutional arrangement. How long the social values of a large Japanese company can last depends on the skill of individual corporate leaders. I believe that the special creativity inherent in the Japanese will allow most companies to maintain their traditions and culture for a long time. It should be noted that the social climate I have described is typical of older, larger, more prestigious companies; you will not meet it in small young firms. In 1979, more than 17,000 companies went bankrupt in Japan, and, of course, their employees had no job security. Small firms that rarely have unions usually hire and fire people based on their workload. This gives the system an internal dynamism as it encourages labor force move to more competitive companies. This kind of natural selection, whereby weak companies are allowed to die rather than sent in by government rescue teams, is another unintended advantage of the Japanese approach.
Legally, in Japan, the concepts of small and medium-sized enterprises (SMEs) and small enterprises proper (SE) are separated.
SMEs in terms of the average number of employees and the amount of equity capital should not exceed the following limit levels for the reporting period:
- - in industry 300 people and 100 million yen;
- - in wholesale trade 100 people and 30 million yen;
- - in retail trade and consumer services of the population 50 people and 10 million yen.
Japanese legislation classifies as small enterprises those enterprises in which the average number of employees does not exceed the following levels:
- - 20 people in industry;
- - in trade and service 5 people.
In every sector of the Japanese economy, small businesses play a leading role. Of the approximately 6.5 million private enterprises, 99% are small enterprises. Almost 80% of the total able-bodied population of the country, which is about 60 million people, is employed in small and medium-sized businesses. 51% of the value of manufactured products, 64% of wholesale turnover and 76% of retail trade are small enterprises. Moreover, such proportions were maintained not only during periods of stable economic development, but also during recessions, which indicates the viability of small enterprises.
In Japan, state support for small businesses is carried out on the basis of a relevant law that has been in force since 1963. This serves as proof that high-quality and stable legislation has a positive impact on the economic life of the country.
Based on the recognition of the important role of small businesses in the Japanese economy and the need to support them, the law sets goals such as promoting the growth and development of small businesses, as well as improving the economic and social welfare of owners and employees of small businesses. As a tool for achieving these goals, the law defines the improvement of production and commercial conditions for the activities of small enterprises, the correction of unfavorable economic and social factors facing small and medium-sized businesses, maintaining the level of viability of small enterprises.
In Japan, there is an extensive system for the implementation of policies in the field of support for small enterprises. In this system, the role of the state is to plan, develop projects, coordinate and finance relevant programs. To this end, the Bureau for Small and Medium Enterprises has been established within the Ministry of Foreign Trade and Industry of Japan (MVTP).
With the participation of the Japan Small Business Corporation, legislation has been developed in detail and comprehensively to support small and medium-sized businesses. Legislative norms provide not only benefits and benefits for small businesses. Schemes of interaction between small businesses have been created. State structures and public associations of entrepreneurs have created a corporation for financing small and medium-sized businesses with numerous branches that provide financial support to small businesses, both at the expense of budgetary resources and by issuing guarantees for long-term and short-term bank loans. To protect their interests, small businesses have the right to form consortiums and cartels without antimonopoly sanctions being applied to them. A system of credit, financial and insurance institutions has been formed, focused on servicing the sector of small and medium-sized businesses.
The Japanese government, in addition, has taken a number of measures to develop franchising, provide government orders to small businesses, and promote their export activities.
There is also preferential taxation for small and medium-sized businesses. For individual private entrepreneurs, a system of deductions from taxable income tax, personal tax at the place of residence and tax on personal entrepreneurship has been developed. In addition, in addition to the above deductions, the total amount of revenue up to 840,000 yen per year may be deducted from taxable income under the Small Business Mutual Assistance Contribution Tax Deduction Law. In case of use real estate for business purposes, an exemption from property tax is applied in the amount of up to 80% of the accrued tax.
For small businesses, reduced rates of income and local taxes apply, as well as a special tax regime for bad debts.
To stimulate the modernization of small enterprises, special depreciation is provided for purchased equipment, preferential taxation for electrical equipment, a tax incentive for increasing spending on experiments and research, as well as some other measures.
In the budget of Japan for 2001, 1 billion 600 million US dollars were allocated for state support of small businesses, of which 1 billion through the Ministry of Economy and Industry, and 600 million US dollars through the Ministry of Labor and the Ministry of Finance. Compared to 2000, the budget increased by 0.2%. (Table 2.5)
In world practice, there are various models of relationships between a bank with state participation in capital and specially created to stimulate lending to small businesses and small and medium-sized businesses.
A bank with state participation can provide loans not
directly to borrowers (small businesses), but to predetermined lending institutions, which in turn will meet the lending needs of small businesses. Such a model exists in Germany, where these credit institutions are called "home" banks (it can be a savings bank, a credit partnership or a commercial bank).
"Table 2.5"
Key Indicators of Small Business Development and Government Support in Japan
The Ministry of Economy, Trade and Industry of Japan (Ministry of Economy, Trade and Industry - METI) is the developer of the state strategy for the development of the country's economy and, in particular, coordinates the entire national system of support and development of small businesses. The effects of the economic downturn that began after the financial crisis in 1998 significantly worsened the situation of the small business sector. In this regard, the Government of Japan and METI have taken a number of measures to improve the national economy and develop small businesses, especially in the field of science-intensive and high-tech industries, ensuring an increase in the country's export potential. To this end, in 1999, significant changes were introduced to the "Basic Law on Small Business", which contributed to the adaptation of the small business sector to significant changes in the economy associated with the revolution in information and high technologies, globalization of markets and increased competition. The new version of the law raises the role of the small business sector as a source of dynamic development of the national economy. Priority areas for the further development of small business are the support of innovative and venture enterprises, the improvement of the enterprise management system and the increase in their sustainability in order to increase their competitiveness in world markets. For the fundamental modernization of industrial small enterprises (re-equipment with modern equipment and wide application the latest technologies, improvement of working conditions, etc.) the size of the authorized capital was increased by 3.3 times. At the same time, in the service sector, the size of enterprises grew to 100 employees, and authorized capital increased 5 times.
In order to accelerate and sustainable development of the country in the face of increasing competition in world markets, the Government of the country in 2001. the following structural changes were made in METI aimed at improving the economy and increasing the export potential:
established "Bureau of Industrial and Economic Policy" to promote economic reforms;
the Bureau of Trade and Economic Cooperation was reorganized to develop an effective strategy for trade policy and control its implementation in trade negotiations at all levels. This bureau will also deal with insurance and trade finance issues;
"Bureau of Industrial Research, Technological Policy and Environment" is established, which is combined with 15 research institutes for the purpose. ensuring the integration of industrial, technological and environmental policies;
to ensure that Japanese industry meets the requirements of global competition, a "Bureau of Manufacturing Industries" was organized to provide inter-industry cooperation in terms of technology, environmental protection and waste management;
to improve the national system of measures to protect the results of intellectual activity, fundamental research and technology development, the "Japanese Patent Service" was reorganized;
The Small and Medium Enterprise Agency (SMEA) was established to ensure the sustainable growth of SMEs and develop their export opportunities.
These organizational decisions made it possible to start systemic changes in structural, economic and industrial policy, which made it possible to mobilize resources in the following priority areas of activity that contribute to the fastest recovery and growth of the economy:
Reforming the support system innovation activities will focus on accelerating the commercialization of R&D results to rapidly promote new Japanese products and services to global markets in order to take a leading position. Scheduled priority areas R&D (environmental science, life sciences, medicine, health care and biotechnology; nanotechnology, new materials, means and systems of broadband communication, high and Information Technology). To this end, budget financing of the most promising R&D under government and private orders was increased by 35% and reached Ґ46.3 billion. To revive the joint activities of research institutes, universities and SMEs working in the field of creating
new industrial technologies were additionally allocated Ґ72.2 billion of budgetary funds. In order to stimulate the creation of subsidiaries at universities for the transfer of technologies to industry, in 2002, allocations were increased from Ґ36.2 to Ґ47.7 billion. This will make it possible to create 1,000 new innovative SMEs in 3 years. It is expected that in the next 5 years this will allow a 10-fold increase in the number of patents issued in the country.
The issues of the use of intellectual property rights and their protection occupy an important place in the improvement and development of innovative activities, as well as in ensuring the competitiveness of Japanese goods and services in global markets. These are ways of spreading intellectual property, strengthening information protection, reducing the cost of registering patents and speeding up their issuance, preventing industrial espionage and theft of intellectual property, countering the production of counterfeit products, etc. By 2010, it is planned to improve the entire infrastructure for ensuring intellectual property rights and enforcement all international standards in this area.
The revival of the regional economy is planned to be carried out through the formation of 19 industrial clusters that unite, on a technological and organizational basis, the interaction of individual large industries with many SMEs. This will support the creation of new SMEs, accelerate the transfer of technology and stimulate the development of the regional economy.
Enhancing the resilience of SMEs and developing systems economic security entrepreneurship is one of the most important areas of state economic policy. For this, financial support for the SME sector was strengthened and systems of their economic security were created. Measures were taken to strengthen the nationwide SME credit guarantee system by private financial institutions, while at the same time relaxing the criteria for SMEs seeking financial assistance from the business economic security system.
To a large extent, the implementation of strategic plans for the development of the SME sector and the expansion of its export opportunities was entrusted to the government agency SMEA, which coordinates and interacts with the following major organizations involved in the national system of support and development of SMEs:
- Ш "Organization for Small & Medium Enterprise and Regional Innovation - SMRJ";
- Sh "Japan Finance Corporation for Small & Medium Enterprise" (JASME), is a branch of SMRJ;
- Ш "National Financial Support Corporation" (National Life Finance Corporation -NLFC)
Significant information, advisory and technical
Exporters are supported by the state-owned Japan External Trade Organization (JETRO). JETRO was established in 1958 to promote Japanese exports to international markets. At present, the activities of this organization are aimed, on the one hand, at expanding foreign investment in national economy and, on the other hand, to help Japanese small businesses develop their export potential.
The most powerful and versatile (financial, consulting, informational and technical) support for SMEs is provided by numerous private organizations, universities, research institutes and public organizations. Only financial support for SMEs by private financial institutions is almost 9 times higher than state support. Consolidated efforts made by the Japanese government, local governments and private capital, in collaboration with various professional and public organizations made it possible already in 2003 to overcome the recession in the economy, increase the sustainability of SMEs and start an effective struggle to create new goods and services that provide leadership in certain segments of the world market. Already in 2004, the export of Japanese goods and services increased by 20.3% compared to 2003, reaching $565.15 billion.
throughout the world is today an integral element of the modern market economy system, without which the economy and society as a whole cannot exist and develop normally. All over the world, small acts today as one of the driving forces of economic and scientific and technological progress, the main employer in all sectors of the economy. And I decided to write a series of articles in which we will consider the role of small business in the economy of some developed countries. With these articles, I want to dispel the opinions of many skeptics who believe that small business has become obsolete, that it is being absorbed by big business. The articles contain only facts that speak for themselves.
Small business in the USA.
To include business entities that employ less than 500 people and the volume of production or sales of which does not exceed $ 7,000,000. At the same time, all small enterprises are divided into firms with the number of employees up to 20 people, from 20 to 100 and from 100 to 499 people. In addition, among small businesses, there are those that use the labor of hired workers, and those where the owner of a small business does without the involvement of hired personnel.
Small business in the US is the main source of jobs.
Small business in the US has always been regarded as a major source of new jobs and innovation. Small business is 99% of the country's firms, which provide more than half of all jobs. Small businesses export more than a quarter of goods and services from the US and file 13 times more patents than their big competitors. There are about 10 million businesses in the United States today with fewer than 500 employees. Most of them have less than 20 employees.
Approximately one out of every three American families is involved in a small business. That is, small business in the United States is not just one of the types of entrepreneurship, but, in essence, a way of life. American small business is developed in all spheres of the economy: small business operates both in trade and in the manufacturing sector. He is in the financial sector, and in consulting, and in the field of innovation, and in the field of social services. Some American sources claim that up to 20% of small US firms start their activities with a capital of $1,000-5,000, and more than half of them increase their annual income to $1 million in less than 2-3 years.
State support for small businesses in the United States is within the competence of a special state organization- The Small Business Administration (SBA), created by the US Congress in 1953. It is entrusted with the responsibility of providing small businesses with financial and advisory assistance, assisting in obtaining government orders and concluding contracts with large enterprises.
Government support for small businesses in the United States.
Small businesses are provided with direct and guaranteed loans. Direct small firms receive for a fixed period, but at lower interest rates than when received in the private capital market. When issuing guaranteed loans, AMB provides lenders with state guarantees for a part of the loaned capital (up to 90%), which reduces the risk of lending. SBA cooperates with federal government departments that procure goods and services. AMB also cooperates with large private contractors of the federal government. Especially when developing policies that encourage small businesses to get more involved in government contracts.
The Administration and Management Department of the Administration is doing a lot of work to train and improve the skills of the management personnel of small business entrepreneurial structures. Organizes and finances special training courses, seminars and conferences. Produces release information materials and benefits, the allocation of financial resources for research in the field of managerial problems small business.
Seminars and consultations are held both on a group and individual basis. In addition, the Administration interacts with universities, research centers and organizations that include special sections for small businesses in their management and production organization courses. It is also practiced to provide targeted scholarships for university education to gifted applicants from the small business environment.
A special government program is being implemented to assist small businesses owned by national minorities. It is based on the Equal Opportunity Act of 1964 and the Public Works and Economic Development Act of 1965.
Therefore, small business has made it possible for all categories of the population (national minorities, women, citizens with a low educational level) to be competitive in the labor market, to occupy positions that are beyond their reach in large companies. This is confirmed by a significant increase in such enterprises in last years. For example, the number of firms owned by Hispanics increased from 5.6% in 2000 to 10.7% in 2012.
As you can see, the US economy is unthinkable without small businesses, and the support provided to small businesses contributes to this.
Small business in Japan.
Small businesses in Japan include enterprises with less than 1,000 employees in the mining industries, less than 300 employees in all other types of industry, transport, communications and construction, less than 100 employees in wholesale trade, and less than 50 employees in retail and services. There is another indicator that determines belonging to a small business. This is the value of the capital of this enterprise. In the vast majority of cases, it should not exceed 100 million yen, for wholesale trade- 50 million yen, and in retail - 10 million yen. Thus, a huge layer of enterprises falls into the sphere of small and medium-sized businesses - from extremely primitive family-type cottage farms to equipped modern technology firms.
Japan's economy differs from other developed economies by minimal state participation. The state owns only the mint. Everything else belongs to private capital. In the economy of Japan, small enterprises play a crucial role: they account for up to 99% of the total number of companies, about 55% products sold and 80% of the number employed in industry and trade.
Small business support in Japan.
Small business in Japan finds help not only from the government and several specialized organizations created by it, but also from the administration of prefectures, local departments of foreign trade and industry, chambers of commerce and industry.
The state policy of promoting small businesses includes the following areas:
- Ensuring competitiveness by allocating subsidies and loans - direct loans (the Japanese Development Bank allocates them to small enterprises operating in the most promising industries) and guaranteed loans. Thanks to the introduction, commercial banks are willing to lend to small businesses. In 1994, 60% of all loans were to small businesses);
- encouragement of structural adjustment, modernization of economic activity, improvement of working conditions, promotion of trade;
— collection and analysis of information on economic performance and technical equipment of small and medium-sized enterprises to assess the effectiveness of state support.
Small business financing system in Japan.
Japan's small business financing system guarantees the provision of subsidies and loans by local governments. If necessary, with the involvement of private credit institutions.
Financial support for the technical re-equipment of small businesses is carried out through the allocation of loans from the local budget. Equipment is being sold by installments or rented out by prefectural landlords.
The allocation of subsidies covering up to 50% of costs for the creation of centers for improving the technical level of small and medium-sized businesses, consulting, advanced training of technical workers, etc. has become widespread. The state assumes the costs of diagnosing the state of small enterprises.
An integral element of the Japanese system of small business financing is compensation for the costs associated with training. Compensation is 2/3 of the cost of professional development of employees.
Government support for small businesses in Japan.
The Japanese government is taking care of renewing the business sector and facilitating the creation of new businesses. In 2003, a law was passed according to which you can open a small business without initial capital - with only one yen! And 32,000 enterprises have already been created in this way.
In 2000, a law was adopted that simplifies the bankruptcy procedure as much as possible in the field of small enterprises. Under this law, it is allowed to go to court for protection against creditors even before liabilities exceed assets, in order to prevent their dispersion. This supports, allows you to quickly resume its activities, but does not add joy to creditors.
Such support for small businesses allows them to play an ever-growing role in the Japanese economy. More than 6.5 million small businesses successfully operate in Japan. It is no coincidence that Japan is one of the world leaders in small business development.
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