Small and Medium Enterprises (SMEs) which greatly contributed to economic growth
SMEs can be a driving force for economic development. SMEs present 99.7 % of enterprises in Japan. In the past when Japan converted from the agriculture and the textile industry-centered structure to a machine industry-centered structure, SMEs played an important role.
JICA-Net multimedia-based learning material, “Japan's Experience in Promoting Small and Medium Enterprises” (YouTube, external link), which we created at this time, explains the transformation that took place from the textile industry to the current structure and SME promotion policies in Japan. By sharing Japan’s experience, we will convey the importance of considering SME promotion policies based on the circumstances of each country.
Introduce a highlight of Japan’s SME promotion
The material is divided into 3 sections to introduce Japan’s SME promotion.
The material is divided into 3 sections. Section 1 covers the period before World War II, introducing the situation and policies in the 1930s when the transformation towards the machinery industry began.
Section 2 covers the post-war period, explaining SME promotion policies for the purpose of enhancing the competitive power toward the trade liberalization, the shindan system (Shindan = (SME)Consultancy), and the productivity movement.
After the achievement of economic growth in the 1960s, the Japanese government laid out its next vision for building a knowledge-intensive industry as the new leading industry, though it was difficult to say that an expected result was produced in the end.
In section 3, the material conveys the lessons and the key point of promoting SMEs.
The material shows the actual parts manufacturing site filmed in cooperation with the factory Takeda Kanagata Seisakusho, in Niigata Prefecture, Japan.
We created the material focusing on Japan’s major initiatives and effects for the promotion of SMEs, explaining shortly in about 20 minutes.
The lecture is delivered by FUNABASHI Gaku, JICA Senior Advisor, Associate Professor of International University of Japan. Also, the brief explanation about the shindan system is presented by ISHIDA Miho, JICA Deputy Director, SME management consultant.
The content can be used as an introduction material to learn about this field for the first time.
To utilize Japan’s experience
The material is intended to be used in an introduction lecture of JICA’s program such as Knowledge Co-Creation Programs, as supplement material for JICA Chair lectures, and in local universities, mainly for trainees of JICA’s program, JICA staff, local university staff, and others involved.
Although the example of Japan’s policy is not necessarily applicable to countries aiming for industrial conversion, we hope that it would be a reference to consider the suitable methods for each country.
Private Sector Development Group
JICA Economic Development Department
*The Material(s) mainly applied
Japan's Experience in Promoting Small and Medium Enterprises
This video focuses on the role played by small and medium-sized enterprises (SMEs) in the transformation of Japan's industrial structure and the related policies implemented by the Government of Japan. It explains how Japan converted to a machine industry-centered export structure before and after World War II and related industrial policies which were effectively implemented. In addition, it also explains the lessons learned from the subsequent shift to knowledge-intensive policies aimed at advancing SMEs industries. By sharing Japanese experience, this video emphasizes the importance of considering SME promotion policies based on circumstances of each country.
JICA Lecture Series of Japanese development experience to date： in line with JICA Global Agenda, cooperation strategies by development issues This video series provides a comprehensive summary, by development issue, according to the lineup of JICA’s cooperation strategy called the “JICA Global Agenda.”
These video lecture shall be widely disseminated to JICA chair participants, trainees, JICA staff, and other interested parties. To have them learn about the process by which Japan has solved development issues.
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