Supporting the emergence of women's entrepreneurship

Abstract

PurposeThere are a number of reasons why entrepreneurship has struggled in the Japanese context. Since the historical period from post‐war Japan until the 1990s, a large‐firm “institutional logic” prevailed. For example, in post‐war Japan, large dominant firms emerged that were supported by government policies and heavily structured around sub‐contracting. Such firms strongly influenced Japanese human and financial capital and, because they offered life‐time employment along with better pay and benefits, they quickly became the employment of choice for talented individuals. As a result, few talented people chose to become entrepreneurs, which in turn led to a cycle of sluggish venture capital investment and the perception of high risk. This short perspective‐style article aims to focus on the recent institutional changes in Japan which appear to have led to more women engaging in entrepreneurship.Design/methodology/approachThis is a practitioner‐oriented piece reporting on work being done to support the emergence of women entrepreneurs in Japan. The author considers whether the recent changes are sufficient to allow women to reach their full potential in the Japanese business landscape.FindingsThe fortress of traditional Japanese business, which largely excludes women, appears to be surrounded by the “cloud” of a growing and necessary group of women who are a vital resource amidst Japan's otherwise shrinking labor market. Women consumers played a critical role in the emergence of the digital economy of Japan and are now playing a key role politically.Research limitations/implicationsThis is only a practitioner‐perspective article.Practical implicationsA greater understanding of changes in institutional and regulative logic as well as the role of technology could potentially impact policy and practice.Originality/valueThis is an original study focussing on the world's second‐largest economy and an area of significance for stimulating innovation in the context of Japan. There is also potential for extending theory.