Small Firms - marginal actors or saviour of the Japanese Economy



Abstract

In order to examine the evolution of small enterprises in the economy of Japan especially in the period after war, this paper elaborates such rates of entry of the firms which have turned down harshly in the ending of the century or accordingly, a drift is examined transversely in majority sector of the Japanese economy and also across the majority of firms which are categorized on the basis of their sizes. For explaining this pattern, this paper on the coursework seeks out the entry determinants in the Japanese economy. Amongst several features, it investigates the cost advantages which are required to pay to the small firms and unavailability of the technically oriented resources as those are vital factors to entrance. It also seeks out the accessibility of the loan that is directed by the government discouraged the entry which recommends the present condition, such governmental programs of credit secure and assist incumbents. Surrounded by some influential factors, it analyzes the chances of subcontracts to promote entry which recommends that the composition of subcontracting in the economy of Japan is unlock to newcomer entrants and assists in giving them a grip in Japanese financial system.

Small Firms - marginal actors or saviour of the Japanese Economy

Introduction

The economy of Japan is comprised of a very high percentage of the small firms, in the manufacturing sector, small and medium sized enterprises with lesser than 300 workforce in total comprise around 99.4 percent of overall enterprises and employ about three quarters i.e. 75.1 percent of the total workforce of the manufacturing industry. Such relatively smaller firms at an approximation produce around 51.6 percent that is half of the output of manufacturing in that economy. Majority of the retail and wholesale firms are also small sized. Approximately 85 percent consist of less than 10 workers and, around half i.e. 48.7 percent of all the retailing stores employ just one or two workers. Thus, the total numbers of retail stores that are owned by the individuals are decreasing day by day. Several small stores do not possess a successor, and they are continually losing the business to larger retailers and convenience stores. Normally, Small firms are required to pay relatively lower wage rates and are unable to offer their workers the security and benefits of similar level as by the larger firms. They are more expected to recruit part-time and older workers as they cannot try to win or compete with the new graduates of schools which are highly enthusiastic and energetic about their careers and mostly hired by the larger firms.

Discussion

Numerous individuals in the economy of Japan who are associated with some work are increasing steadily as they were 36 million in the year 1950 and in the year 1995, they have been 64 million, but, after that there have been seen a drastic decline which is continued since today. Through that time, even the nature of work has been seen as continually ...