In a normal business set-up, SMEs (Small and Medium-sized Enterprises) outnumber multinational companies. In fact, not all big companies started big right away. Instead, they started out as SMEs and just worked they way up. In Japan, even big automobile companies started as SMEs, which soon boomed by keeping up with the stiff competition and continuously innovating products and services.
Not all people from the workforce are aware that SMEs support different industries such as construction, service, and retail trade. With the help of SMEs, career opportunities are created and local economies are revived.
In spite all the benefits that SMEs give to the Japanese government, has Japan formulated policies to show its full support? Are these laws and policies SME-friendly? Here are some of the existing policies:
1. The policies governing SMEs are being approved by the SME Agency and implemented by several organizations that work hand in hand. Some of these organizations are JETRO, SMRJ, SME Support Centers, Financial Institutions, Credit Guarantee Corporations and many others.
2. For the Fiscal Year of 2013, the Japanese government has put up some measures that will focus on micro enterprises. This means allotting budget in the manufacturing field, strengthening the performance of local commerce and reviving micro enterprises and SMEs.
3. Policies have been revised in order to provide SMEs with new credit guidelines that will benefit them. These policies include long term financial support at very minimal interest rates.
4. The ongoing system between SME subcontractors and main subcontracting entrepreneurs was investigated due to unfair business practices. In order to resolve this, unauthorized fees deducted by main subcontracting enterprises were given back to SME subcontractors. Moreover, free consultations are now given by lawyers to ensure that everything will run smoothly.
These are just some of the policies that help SMEs to grow and become multinational companies in the future. Should you need more information, come and talk to us.