Small business in Japan: A historical perspective

Abstract

Small firms have been considered to be an important element of the industrial structure in Japan since the turn of the century. In this paper the history of small business in Japan is examined. In particular, the dramatic development of the technological and managerial ability of small firms within the last two decades is analyzed. Under the regime of rapid industrial restructuring in Japan, small firms are identified as developing their own diversive management strategies, especially with respect to international trade and the implementation of information and high technology.