Welsh, D. H. B., Memili, E., & Ochi, M. 2013. Japanese Women Entrepreneurs: Prospects for Growth. Paper published in the proceedings at USASBE conference, San Francisco, CA.
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JAPANESE WOMEN ENTREPRENEURS: PROSPECTS FOR GROWTH
Dianne H.B. Welsh
The University of North Carolina at Greensboro 328 Bryan Building P.O. Box 26170 Greensboro, NC 2740 336.256.8507 dhwelsh@uncg.edu Esra Memili
The University of North Carolina at Greensboro
Miyuki Ochi
The University of North Carolina at Greensboro
ACADEMIC ABSTRACT
Japanese women entrepreneurship is currently one of Japan’s growing economic sectors. The number of entrepreneurs in Japan is proportionately very small compared to other countries. We conducted an internet survey on Japanese women entrepreneurs. Our results show that marital status is one of the biggest factors which should be considered, because whether they have family support strongly affects their business. In addition to such mental support, a customized
long-term support system with strong connection between supporters and women by both the
governmental and private agencies is important for further growth of Japanese entrepreneurship.
EXECUTIVE SUMMARY
Japanese women entrepreneurship is currently one of Japan’s growing economic sectors. The purpose of this research is to investigate the characteristics of Japanese women entrepreneurs and the problems they face given the current economic conditions, and to provide recommendations
countries, the number of entrepreneurs in Japan is proportionately few (Kelly, Brush, Greene, & Litovsky, 2010). The so what question is as Japan continues to shrink in numbers,
entrepreneurship becomes more important as a financial growth strategy for its population. Our results showed that Japanese women entrepreneurs tended to be involved with what are
traditionally considered female dominated fields, such as beauty, food, sales, education, and consulting. Women tended to branch out into new business fields different from their previous work experience. As for consulting jobs, there were many kinds of surveyed consultants in fields including education, foreign languages, counseling, and property and real estate, among others. Women entrepreneurs tend to find a wider job range than their traditional field of training. According to the annual report on women entrepreneurs and confirmed in this exploratory survey, the lack of functional business skills and management skills is the biggest issue that Japanese women entrepreneurs face. In this survey, the respondents were asked to evaluate their functional business skills including finances, dealing with people, marketing, sales, idea
generation/product innovation, organization and planning, and general management skills. Most (83%) had confidence in dealing with people, as most of them evaluated this skill as “excellent” on a four-point scale (poor, fair, good, and excellent). Implications are discussed.
INTRODUCTION
Entrepreneurship contributes to economic development and high levels of entrepreneurship are related to increases in gross domestic product, societal wealth, and quality of life in current societies (Futagami & Helms, 2009). According to the Global Entrepreneurship Monitor 2010
women’s report, over 100 million women in 59 economies started and managed a new business
venture (Kelly, Brush, Greene, & Litovsky, 2010). These countries represent more than 52% of the world’s population and 84% of the world’s Gross Domestic Product (GDP). Women
entrepreneurs made up 1.5% to 45.4% of the adult female population in their respective
economies. Over 80 million women across those regions ran businesses which they had launched at least three and a half years previously. Together, these approximately 180 million women exemplify the contributions made by women to international entrepreneurship (Kelly et al., 2010).
While Japan is one of the most innovation-driven developed countries, the number of entrepreneurs in Japan is proportionately few (Kelly et al., 2010). Japanese conventional business culture, the seniority system, enterprise unions, lifetime employment schemes, and restrictive government policies account for Japanese society’s slow growth in new venture creation (Futagami & Helms, 2009). This paper investigates the characteristics of Japanese women entrepreneurs and the problems they face given the current economic conditions, and provides recommendations based on the results of our study. We conducted an internet survey on Japanese women entrepreneurs. Understanding what has shaped Japan’s role as one of the few innovation-driven countries is crucial for further developing women’s entrepreneurship in Japan to have a lasting impact on its economy.
WOMEN ENTREPRENEURS History
Women entrepreneurship started to appear more prominently in the 1980s (Coughlin, 2002). Because women had limited access to capital, business and technical education, and management experience, self-employed women were mainly from liberal arts backgrounds and unlikely to launch businesses in male-dominated industries prior to the 1980s (Moore & Buttner, 1997). The number of female entrepreneurs dramatically increased after the 1980s when women were gradually accepted as a major part of the labor force in some industrialized countries, especially the United States (Coughlin, 2002; Moore & Buttner, 1997). During this period, establishment of new laws to support women in entrepreneurship were passed, such as the Equal Credit
Opportunity Act of 1976 and the Women’s Business Ownership Act of 1988 (The Japanese Ministry of Economy, Trade, and Industry, 2010). Activities by non-profit organizations, such as Catalyst, also contributed to increasing the number of women entrepreneurs as well as
broadening their acceptance in American society (Oishi, 2002). The development of women entrepreneurship not only creates new jobs, but also adds wealth to the economy (Coughlin, 2002; Brush, Carter, Gatewood, Greene, & Hart, 2010). As a result, women entrepreneurs are one of the fastest growing sectors in the world (Brush et al., 2010).
Recently, entrepreneurship has been discussed in small and medium enterprises (SMEs) in a variety of contexts (Aaltion, 2008). Especially when it comes to SMEs, women predominate (The World Bank, 2012). This has led many researchers to focus on the SME sector as a main area for women entrepreneurs (Brush, 1992; Coughlin, 2002). However, industrialization and globalization have given women entrepreneurs wider opportunities to start new businesses in a variety of fields.
Barriers for Women Starting Businesses
Although the number of women entrepreneurs is growing and contributing to jobs and wealth in many societies (Brush et al., 2010), the latest Global Entrepreneurship Monitor Report (GEM)
finds that entrepreneurship declines as economic development levels increase. Countries with innovation-driven economies, such as the United States and Japan, tend to have competitive environments and a concentration of knowledge-based businesses, while countries with factor-driven economies have more necessity-based and consumer-oriented entrepreneurs (Kelly et al., 2010). Women have had to face many challenges and this may contribute to avoidance of risk-taking as well as avoidance of the challenges of starting a new business.
Starting up a new business is more difficult for women than men (Carter, Henry, Cinneide, & Johnson, 2006). In industrialized countries, more than half of women entrepreneurs fail at their business within five years (Coughlin, 2002). If a woman succeeds in starting a new business, she may face difficulties in sustaining the business over the longer term. This is because women generally lack access to financial capital, business credibility, business skills (e.g. management and experience), networks, and family support (Carter et al., 2007). In addition, women tend to have lower perceptions about opportunities and capabilities, lower intensions, and higher fear than men, no matter what economy they are in (Kelly et al., 2010).
guarantees required for external financing, financing the ongoing business, and women
entrepreneurs’ relationships with bankers due to sexual stereotyping and discrimination can be obstacles for women entrepreneurs (Carter et al., 2007). This is also related to business
credibility; people may think women are not as serious as men about business and it is difficult to overcome this notion (Carter et al., 2007). However, this is currently controversial (Carter et al., 2007; Coleman, 2000; Greene et al., 2001) because some researchers say the trend is changing and more women have acquired venture capital compared to previous years, even though the percentage of investments in female businesses remains small (Greene et al., 2001).
WOMEN ENTREPRENEURS IN JAPAN History
The amount of research on women entrepreneurs in Japan is extremely low, and most of the available literature is only about women entrepreneurs in agricultural districts. Even the history of Japanese women entrepreneurs is not yet clearly defined. The latest statistics were collected in 2007, reporting 1,063,000 women entrepreneurs, and 4,847,000 male entrepreneurs (The
Japanese Ministry of Internal Affairs and Communications, 2007). The number of women entrepreneurs in Japan has in fact been decreasing since the 1990s (Takahashi, 2002). As one of the world’s leading developed countries, this trend is unusual. Internationally, Japan is
characterized by low levels of entrepreneurial activity predominated by men (Baughn, Chua, & Neupert, 2006). Japanese perceived capabilities, opportunity perception, and entrepreneurial intentions about the female adult population are extremely low (Kelly et al., 2010).
Even if the number of Japanese women entrepreneurs is decreasing, their development prior to the 1980s to now is clear. This progress can be explained from two different perspectives: focusing on women themselves as entrepreneurs, and emphasizing changes in the industrial structure (Tamura, 2002).
The rise of the women’s labor force is a crucial factor relating to women as entrepreneurs. The Annual Report on Working Women (2010) shows that 27,680,000 women were working in Japan in 2010. This number accounted for 42 percent of the labor force, the highest percentage since the report started. However, while the male-dominated traditional economic system still persists in Japan, women are a vital part of the business world now (Brown & Oakland, 2007). Many are involved in the fields of medicine, welfare, direct sales, manufacturing, travel, and food (The Japanese Ministry of Economy, Trade, and Industry, 2010). Tamura (2002) points out that women who have work experience as employees may decide to launch new businesses after they face difficulties working in a company with predominant female stereotyping as part of the company culture (Moore & Buttner, 1997). The opportunity for acquiring higher education may also contribute to this increase in women-owned businesses (Tamura, 2002).
Another factor is the change in market structure due to industrialization. Japanese industrial structure has been changing from heavy industries to service industries since World War II. The National Consensus in 2005 showed that 67 percent of Japanese industries are service related, while the percentages of both agricultural and heavy industries have been decreasing since 1955. Moreover, growth of the internet and information technology has enabled women to create
businesses around this technology (Tamura, 2002; Futagami & Helms, 2009). The fact that women can work from home due to the development of technology has led women desiring to stay home with their families to start home-based businesses. In addition, since more women are working, women’s purchasing power is building and the primary consumers now are not men, but women. This trend has also motivated women to start new businesses (Tamura, 2002).
Characteristics of Women Entrepreneurship
The Ministry of Health, Labor, and Welfare began publishing an official Annual Report on Japanese Women Entrepreneurs in 2010 This initial report revealed several characteristics of women’s entrepreneurship. The report found 30.2 percent of women entrepreneurs run service businesses. Direct sales is the second major business at 18.0 percent, followed closely by 17.2 percent of women running food and travel businesses (The Japanese Ministry of Internal Affairs and Communications, 2007). The breakdown by field for male entrepreneurs is similar. The most popular start-up businesses for males are service, with direct sales being second highest. For men, the third biggest business field is construction (The Japanese Ministry of Internal Affairs and Communications, 2007).
In addition to service occupations, the second most amount of women start one person
businesses. Japan is not an exception to this: many women around the world tend to create small, medium-sized businesses, launching their businesses with a limited amount of money, spending money they already have, or acquiring it from their support groups, primarily family and friends (Tamura, 2002). Typically, most businesses have a few employees (Oishi, 2002).
Finally, the Annual Report on Japanese Women Entrepreneurs (2010) shows that women
become entrepreneurs at a younger age than men. The average age for male entrepreneurs is 39.9 years, whereas women average around 35.5 years when they start a business in Japan (The Japanese Ministry of Economy, Trade, and Industry, 2010). This compares to the United States, where the average age of men is 40 and women is 41 when starting a business (Chung, 2012). It is possible that women start a new business as a way of reemployment, not only because of the desire to earn more money or to run their own business, but rather for the chance to run a business based on their own interests or to meet their individual goals in life (Oishi, 2002; The Japanese Ministry of Economy, Trade, and Industry, 2010; Tamura, 2002). This implies that women may start a business for their own self-accomplishment as well as creating an income. This could partly explain why women who are younger than their male colleagues can face the challenges of launching a new business. Additionally, the fact that there are greater expectations in Japan for men to enter the corporate world enables women to find out that they face the so-called glass ceiling when trying to climb the corporate ladder, which can lead them to start their own business.
In addition to these characteristics, Leung (2011) considers the relationship between entrepreneurship and motherhood as one of Japan’s unique characteristics. It is difficult to
discuss Japanese women’s gender identity without mentioning the ideal woman, dutiful wife, and nurturing mother, (ryosaikenbo in Japanese). Leung, 2011 finds that the “identity of motherhood can serve as the propellant for women and that gender role identity can become the defining
element of the venture identity and be a significant resource leading to a competitive advantage in female entrepreneurship.”
Oishi (2002) classified Japanese Entrepreneurs into four groups: traditional business owners, innovative business owners, home-based business owners, and rapidly progressing business owners. Traditional business owners are women who run businesses that are in traditionally considered to be female dominated fields, such as food and beauty (Oishi, 2002). Innovative business means a venture business. A home-based business owner is a woman who runs her business out of her home. Oishi explains that rapidly progressing business owners are women who run businesses related to non-profit organizations, workers’ corrective services, and welfare services (Oishi, 2002). Since the types of businesses launched are becoming more varied, the problems facing Japanese women entrepreneurs are getting more complicated, and many different kinds of support are needed.
Barriers for Women Starting Businesses in Japan
Researchers have identified difficulties and barriers for women in starting businesses (Annual Report on Japanese Women Entrepreneurs, 2010). First, the biggest problem for women is the lack of knowledge and skills in business management. As the report shows, the average age of women who start a business is quite young. Because many women may leave their jobs before they have job training at a management level, it may be more difficult for women to develop managerial skills.
Obtaining financial capital is another problem for women (The Japanese Ministry of Economy, Trade, and Industry, 2010; Takahashi, 2002). Takahashi (2002) gives some concrete examples of Japanese women who encountered difficulties in acquiring funding through financial institutions. However, he says that there is no research on specific financial capital for entrepreneurs by gender. On the other hand, some researchers say this does not seem to be an issue anymore for Japanese women. This trend can also be observed in other developed countries, including the United States (Greene et al., 2001).
Lack of essential support systems is another important issue. The following support programs are required in Japanese society. Initially, support for improving women’s lives and self-realization are required (The Japanese Ministry of Economy, Trade, and Industry, 2010). Women
entrepreneurs then need job training and the opportunity to meet other women entrepreneurs so that they can share their problems and knowledge. Finally, they need fundamental household support, including childcare (The Japanese Ministry of Economy, Trade, and Industry, 2010). Unfortunately, the lack of research on women entrepreneurs prevents the government from creating such needed essential support systems. As Takahashi (2002) indicates, the government cannot make new policies to create support systems without much more research on Japanese women entrepreneurship. The government must start funding the support of research on women entrepreneurs, and the barriers to the development of these businesses and what optimal
opportunities exist. More researchers are encouraged to enter the field of women entrepreneurship and SME business development to impact public policy.
Sample and Analysis
A self-administered questionnaire adapted from Hisrich, Brower, & Smarsh (2006) on Ukrainian women entrepreneurs was utilized. The 27 questions were translated into Japanese and three items related to family business were added. The participants were asked their challenges in starting and growing their business and possible solutions to these challenges. Data collection took place in Japan from February to March of 2012 using online surveys. Of the 128 women who responded to the survey, 101 women entered responses to the qualitative questions for a response rate of 78%.
RESULTS Personal characteristics
Women between the ages of 30 and 59 years participated in this survey. The largest age group among women entrepreneurs is 40-49 years old, accounting for 40% of the participants, followed by 50-59 years (24%), and 30-39 years old (13%). Fourteen percent of the participants are over 60 years of age and 9% of the respondents are 20-29 years old.
FIGURE 1
Surveyed Japanese Women Entrepreneurs’ Highest Education Level
Sixty-Nine percent of respondents were married, 12% divorced, and 14% were single. Few women thought that their marital status did not affect their business. The majority felt strong connections between their business and marital status in both positive and negative ways. Among the responses to how marital status affects business, single women tended to mention the lack of support and time, while married women pointed out the difficulty of balancing work and life. Most single women who answered positively thought having plenty of free time and making their own decisions were advantages in running businesses as single women. For married women, support from their family members is crucial to running a successful business. Housework and child care can be both an advantage and disadvantage for married women. However, the married respondents said that their spouses helped them rather than hiring outside assistance.
The majority of Japanese women entrepreneurs have a degree from a higher educational institution. Forty-Two percent of women listed their highest education as a bachelor’s degree. Fifty-Six percent of these women have bachelor’s degrees in the fields of business, economics, or literature. Thirty-Four percent of women listed a two-year college or technical trade institution as their highest education. Fifteen percent only completed high school, and 10 percent have completed graduate school degrees. Of these women who have a graduate degree, 2% have a doctoral degree, and 8% have a master’s degree.
0 13 20 10 37 7 2 0 5 10 15 20 25 30 35 40 Intermediate High School Diploma (2-Year) Technical/Trade Bachelor's Degree Master's Degree Doctorate's Degree Number of Respondents E duc a ti o n L ev el o f R eps o nde nt s
FIGURE 2
Age of Surveyed Japanese Women Entrepreneurs
Sixty percent of respondents felt their schooling has been helpful in their business activities, providing them with social networks, opportunities to acquire fundamental knowledge to work, business skills related to their own business fields, and challenges which motivated them to achieve their goals. Additionally, during college years, most women (60%) worked part-time jobs both during semester and on breaks. A great number of respondents (45%) never worked during their middle and high school years.
It is clear that Japanese women have substantial work experience before they start a new business, as 77 of 101 (76%) reported in the survey. They come from various backgrounds and some of them have different work experience at varying locations. The majority (60%) reported that their work experience was either an administrative or sales role while teachers at educational institutions are the second largest category of work experience. Eighty-six percent of respondents who have previous work experience believe their experience was integral in establishing their business. In addition to social networking, opportunities to acquire functional business
knowledge, business skills, and motivational training are needed. Women entrepreneurs who established a new business in the same field as their previous job believe certification and knowledge from their previous work experience are very useful in launching their business. Moreover, the skills they acquired as a manager or leader helped them start their new business.
0 8 12 37 22 14 0 5 10 15 20 25 30 35 40 Under 20 21 to 29 30 to 39 40 to 49 50 to 59 60+ Number of Respondents A g e o f R es po nde nt s
FIGURE 3
Positions Held by Surveyed Japanese Women Directly Prior to Becoming an Entrepreneur
Characteristics of Women-Owned Business and Operations
Almost two-thirds of respondents (62%) have had their business more than five years. The second most prevalent group was less than two years (19%), followed by two to three years (8%), three to four years (6%), and four to five years (5%). The vast majority of business owners (91%) own more than 50% of their business. Of those business owners, 79% planned their
business by themselves; only a few planned with their employees or family members. Thirty-One percent of women business owners construct their budget annually and 31% construct it
according to demand. Possibly due to the type of business, Japanese women business owners are separated into two groups: 17% of respondents have a long range plan, while 14% have a
seasonally adjusted plan. Sixty-Nine percent (66 respondents) started a new business by themselves, and only 6% started their business with a non-family member. Surprisingly, only 12% of respondents started a business with their spouse or another family member. In addition, the population of those who bought or inherited the business from a family member is extremely small (7%). 46 10 1 2 3 2 2 1 1 3 1 1 1 3 0 10 20 30 40 50 Administrative / Sales Teacher Companion Researcher Government Official Nurse Student Family Employee Housewife Manager Singer Lab Technician Dentist N/A Number of Respondents T y pe o f po si ti o n be fo re E nt re pr ene ur
FIGURE 4
How Surveyed Japanese Women Entrepreneurs Became Principals of Business
Access to financial capital for women entrepreneurs is controversial as mentioned above. Indeed, most women (62% of the respondents) used their savings for initial funding and during the first six months of operations. This percentage decreased as time went on. Three years after starting a business, 46% of respondents maintained their business with their own savings. However, the percentage of those who used commercial bank loans has increased as time has gone on, from 8% initially to 20% after three years. Additionally, the survey shows that almost 22% of respondents borrowed money from family members as a source to fund their start-up and less than 10% of respondents use governmental programs or borrowed money from friends. Our survey results showed that women entrepreneurs tended to not depend on others for funds, at least when they launched a new business.
66 7 5 6 1 0 6 1 4 0 10 20 30 40 50 60 70
Started Business Alone Started Business with my Spouse Started with another family member Started with a non-family member Bought from family member Bought from non-family member Inherited from family member Inherited the business from a spouse Other: Number of Respondents H o w J a p a n es e w o m en b eca m e pr inc ipa ls o f bus ine ss
FIGURE 5
How Surveyed Japanese Women Entrepreneurs Acquired Funds to Start Their Businesses
The majority of surveyed women (68%) did not believe they had a problem obtaining funds in a situation where a man would not have a problem. These women responded that their ability to obtain funds depended on their business plan rather than their gender. Some even felt being a woman is an advantage due to their ability to form strong business relationships, although some of them did encounter difficulty in getting funds because they were a woman. Several women who started businesses answered that they were not recognized as business owners. Other people felt women entrepreneurs generally were not trusted as much as men entrepreneurs. Additionally, some surveyed women viewed family matters, such as child care and household responsibilities, as barriers in obtaining funds. Some surveyed women have solved these problems by having had their spouses obtain the start-up funds or by having been persistent in requesting agencies to fund the start-up. 57 20 2 4 7 1 0 0 10 20 30 40 50 60 Own Savings Family Borrowing Borrowing from Friends Government Program Commercial Bank Loan Investment Bank Loan Gift Number of Respondents St a rt up F unds
FIGURE 6
When a Surveyed Japanese Woman Entrepreneur Responded That It Was More Difficult for Women to Acquire Start-up Funds Than Men, Figure 6 Represents How They Overcame This
Difficulty
Our results showed that Japanese women entrepreneurs tended to be involved with what are traditionally considered female dominated fields, such as beauty, food, sales, education, and consulting. Women tended to branch out into new business fields different from their previous work experience. As for consulting jobs, there were many kinds of surveyed consultants in fields including education, foreign languages, counseling, property and real estate, among others. Women entrepreneurs try to find a wider job range than their traditional field of training.
5 1 6 2 4 0 1 2 3 4 5 6 7
Found another solution to problem Found a different guaranteer Got support from husband/family
Changed men's minds by being persistent Other Number of Respondents H o w w o m en o v er ca m e d if fi cu lt ies w it h m a le s
FIGURE 7
The Major Areas of Businesses that Surveyed Japanese Women Entrepreneurs Are Involved With 12 0 3 1 0 5 6 10 3 8 2 0 0 11 3 5 1 1 3 1 3 1 2 1 1 2 1 2 4 1 1 1 4 0 2 4 6 8 10 12 14 Beauty Salon Photography Drawing (or calligraphy) Publishing Tailoring Designing Handcrafts Food Technology/Programming Direct Sales Internet Sales Importing Exporting Education Psychological Counseling Consulting Welfare Chemicals Agriculture Matching Service Planner Dentist Marketing Accounting Copywriting Training Radio Working with Disabled or Elderly Music Hospitality Justice Childcare Other: <not specified>
Number of Respondents M aj or ar ea of b u si n es s
The respondents showed similar size characteristics of their business as has previous research on women entrepreneurs around the world. The majority (56%) of surveyed Japanese women’s businesses have less than 10 employees, and 38% did not have any employees. None of the respondents had more than 50 employees.
FIGURE 8
The Number of Employees That Surveyed Women Entrepreneurs Have Working in Their Businesses
Twenty-four percent of women (21 respondents) reported their businesses as a family business. Their businesses are relatively new and mostly were comprised of first or second generation family members. In addition, the respondents tended to run the business by themselves rather than with their family members regardless of whether their business would be classified as a family business or non-family business.
While it was reported that Japanese women generally run businesses not only for profit but for self-fulfillment, (Oishi, 2002; Tamura, 2002; The Japanese Ministry of Economy, Trade, and Industry, 2010), our results found that respondents tried to grow their businesses. According to the results, the majority of women started their business in their local city or county, and most people currently run their business domestically. Moreover, only two women (2%)
internationally started a business, and eight women (7%) now have an international business. 35 52 5 1 0 0 0 10 20 30 40 50 60 None 1 to 10 11 to 20 21 to 50 51 to 100 101+ Number of Respondents N u m b er o f E m p lo y ees
FIGURE 9
The Scope of Surveyed Japanese Women Entrepreneurs Businesses During the Start-up Period Compared to When the Survey Was Given
Almost 40% of respondents received support and/or assistance from government or private agencies, and a few people received support from multiple agencies. Basically, these women business owners received governmental support (81%) from either national or local community agencies. Their answers reported satisfaction ratings (very dissatisfied, somewhat dissatisfied, neutral, somewhat satisfied) about the type of support or/and service, amount received, manner in which was received, attitude towards you as a client, and quality of material received. Their evaluations revealed that they mostly (89%) feel neutral or satisfied. Comparatively, Japanese women entrepreneurs are not as satisfied with the manner and attitude towards them as a client as much as other items, such as the type of service and amount received. Whether this is gender related is not clear, but is one possible answer.
Japanese women entrepreneurs who responded to the survey felt their friends supported them more than the agencies they dealt with, even though they received support from these agencies. When asked who have been their biggest moral supporters, most women surveyed chose close friends, while parents and spouses tied as the second biggest supporters. Twelve percent of the respondents received support from women’s professional groups. Most of the respondents (68%) responded that they would be interested in joining women entrepreneurs’ networks, and 75% prefer personal groups over internet-based groups.
64 19 14 11 2 55 19 15 23 8 0 10 20 30 40 50 60 70
Local (city or county)
Neighboring Cities Province National International Number of Respondents Sc o pe o f B us ine ss Startup Current
FIGURE 10
The Types of Support Groups and Networks That Aided Surveyed Japanese Women Entrepreneurs
Barriers Current Women Entrepreneurs Face
The biggest obstacle in running a business differs according to business fields and marital status. As previous research has shown, access to financial capital and the lack of management skills and functional business skills are noteworthy obstacles. In addition, time management, including work and life balance, and recognition of their businesses, were big problems for women
entrepreneurs surveyed. For respondents who operate a business without employees, handling everything within the business alone has shown to be difficult. The respondents also considered time management as a problem. Another major issue which 18% respondents cited is lack of recognition of their business. As this survey found, many women entrepreneurs have tried to establish a new business in a new field. Therefore, it may be difficult for people to recognize what they are doing as a new business. Undeniably, women’s networks have advantages and disadvantages. Some respondents answered it has been hard for them to develop their business because they started their business being strongly dependent on their network.
According to the annual report on women entrepreneurs and confirmed in this exploratory survey, the lack of functional business skills and management skills is the biggest issue that Japanese women entrepreneurs face. In this survey, the respondents were asked to evaluate their functional business skills including finances, dealing with people, marketing, sales, idea
generation/product innovation, organization and planning, and general management skills. Many (83%) had confidence in dealing with people, as most of them evaluated their skill as “excellent”
12 16 7 31 5 4 2 2 2 3 6 0 5 10 15 20 25 30 35
Women's professional groups Community Organizations Social Group Close Friends Other: Work-Related Event Other: Networks for business Other: Networks for Entrepreneurs Other: University Other: Local Other: Business owners in same field Other: I don't have any support
Number of Respondents Suppo rt G ro ups & N et w o rks
connect with other networks. They evaluated their own marketing, sales, and idea
generation/product innovations skills as comparatively good. Respondents believed their organization and planning skills are fair and financial skills are poor (67% and 87%, respectively).
However, financial skills are not identified as one area which women entrepreneurs need additional skills and knowledge. In another question about skills needed, 51% of women answered they need more training in marketing skills, 53% need more interpersonal skills, and 42% need more general management skills. Only 29% identified that they needed additional financial skills, followed by technology and computer skills (28%). This shows that these women try to improve the skills which they already feel competent, rather than those in which they do not feel competent.
FIGURE 11
The Areas in Which Surveyed Japanese Women Entrepreneurs Need More Skills or Knowledge as Business Owners
LIMITATIONS
This survey was conducted online and mostly through support organizations and networks of women entrepreneurs. Therefore, the results are strongly influenced by people who can use the internet and belong to networking organizations. Even though Japan is one of the high
technological countries and has great promise for entrepreneurs, women are considered to use the internet less than men (Futagami & Helms, 2009). Future studies should expand data gathering to include those who do not use the internet. Other means to gather data should also be included, such as student-based businesses through universities and other educational institutions.
51 6 47 42 29 8 28 18 9 1 3 0 10 20 30 40 50 60 Marketing Purchasing General Management Interpersonal Skills Finance General Services Technology & Computers Language Other: Technical Skill Other: Strong Will Other: Not specified
Number of Respondents A re a s n ee d in g a d d it io n a l s k ills
CONCLUSION
Japanese women entrepreneurs play an important role in economic growth, even though the number of women entrepreneurs is decreasing in the recession. While the exploratory survey found that the majority of respondents think starting and running a new business is not gender related in terms of success factors, some interesting findings emerged in this area. Our survey revealed that single women and married women face different barriers. Marriage was the differentiating factor in the study. The meaning of time management differs depending on whether they are married or not. For single women, time management can be an advantage as a business owner, while it can be a disadvantage for married women. Some single female business owners are pleased to spend time freely as they want to; on the other hand, they feel the lack of support from family. For married women, time management generally means how they manage to balance work and family. The survey results found that family support does not mean support from their parents but from their spouse and children. From these preliminary findings, it seems that marital status affects their businesses.
Along with psychological support, the lack of fundamental business support from the government or related organizations has been well documented (The Japanese Ministry of Economy, Trade, and Industry, 2010; Oishi, 2002). As Oishi (2002) states, the barriers Japanese women entrepreneurs face are getting complicated. This was also confirmed by our preliminary results. Findings show that one of the biggest issues is lack of recognition of their new business. The fact that their business is not considered a business implies that Japanese women
entrepreneurs are pioneers breaking new ground in society’s recognitions of the roles women can play. In addition to support for improving women’s lives and self-realization, (The Japanese Ministry of Economy, Trade, and Industry, 2010) job training, the opportunity to meet other women entrepreneurs, and fundamental support for household duties, including childcare (The Japanese Ministry of Economy, Trade, and Industry, 2010), assisting the women-owned businesses to be recognized by the Japanese society as legitimate is essential.
Support for women-owned businesses needs to develop and be accessible in many different ways. Since most women feel they received support from their friends and private agencies according to the results, it seems that there is a strong connection between supporters and women entrepreneurs that is more than just material. Therefore, establishing long-term support systems, both formal and informal which includes accessibility to government and private agencies, is essential for further growth of Japanese women entrepreneurship.
APPENDIX QUESTIONNAIRE
JAPANESE WOMEN ENTREPRENEURS: A GROWING ECONOMIC SEGMENT* 1. Are you now a principal in a business? Yes No Previous
2. For how many years has (had) the business been in operation?
Less than 1 year . . . 3 to 5 years . . . 1 to 2 years . . . Longer than 5 years . . .
3. If you are no longer in business, what was the prime reason for terminating your involvement?
Excessive time involvement . . . Lack of business growth . . . Family pressure. . . Other: Please explain:
______________________________ 4. What percent of the business do (did) you own?
50% or less . . . 51% or more . . .
5. How would you describe the major area of the business activity?
Beauty salon . . . Direct sales . . . Hand Crafts . . . . Photography. . . Internet sales . . . Legal services. . . . Drawing. . . Importing . . . Food . . . . Publishing . . . Exporting . . . Childcare. . . . Tailoring . . . Accounting. . . Cleaning. . . . Designing. . . Health care. . . Technology & Programming . . . . . Other services: (please specify):_______________________________________________________
6. How did you become a principal of the business?
Started business alone . . . Bought bus. from a non-family member . . . Started business with my spouse . . . Inherited business from a family member. . Started with another fam. member . . . . Inherited the business from a spouse . . .
Started with a non-family member . . . . Other: Please explain: ________________________ Bought the bus. from fam. member. . . . ___________________________________________
7. Please check () the following items to describe how you obtained and maintained the funding and financing required to initiate and maintain the ownership of your business. Check as many boxes as apply.
Source of Funding
Initially or during the first six months of operations.
Between the first six months and first year of operations.
Between the first and third years of operations.
After three years in business.
Own savings Family borrowing Borrowing from friends Government program Commercial bank loan Investment bank loan Gift
8. Do you feel that you had greater problems in obtaining funds for your business than a male would have had in the same position? Yes No Please explain: _____________________________________________ If you feel that you had greater problems than a male, please indicate ways you overcame these difficulties. __________________________________________________________________________________________
9. Please complete the following if you received any support or/and assistant services from a government or private agencies: (please fill out as many as apply)
Name of agency: ________________________________Type of agency: Private Government
Type of support: ____________________________________________________________________________ Satisfaction Ratings: Very Dissatisfied Somewhat Dissatisfied Neutral Somewhat Satisfied Very Satisfied
Type of support or/and service Amount received
Manner in which was received Attitude towards you as a client Quality of material received
Name of agency: ________________________________Type of agency: Private Government
Type of support: ____________________________________________________________________________ Satisfaction Ratings: Very Dissatisfied Somewhat Dissatisfied Neutral Somewhat Satisfied Very Satisfied
Type of support or/and service Amount received
Manner in which was received Attitude towards you as a client Quality of material received
Name of agency: ________________________________Type of agency: Private Government
Type of support: ____________________________________________________________________________ Satisfaction Ratings: Very Dissatisfied Somewhat Dissatisfied Neutral Somewhat Satisfied Very Satisfied
Type of support or/and service Amount received
Manner in which was received Attitude towards you as a client Quality of material received
10. How many full-time/part-time and family employees does your business have? full time_____ part time______ family______
11. What was the scope of your business geographically at start-up and what is it presently? Start-up Current
Local (city or county) ______ ______ Neighboring cities ______ ______
Province ______ ______
National ______ ______
__________________________________________________________________________________________
13. What type of business planning is practiced in your business?
Annual budget ______ According to demand ______
Long range ______ Other: _____________________________________ Seasonal ______
14. What has been the biggest obstacle in running your business and how have you overcome it?
__________________________________________________________________________________________
15. Who has been your biggest moral supporter in your business venture? Please rank in order of importance (1 being most important and 4 least important, leave empty what is not applicable)
Spouse ______ Child ______ Parent ______ Siblings ______ Relative ______ Friend ______ Mentor ______
Agencies: Government ______ Private ______
Other (please specify) ____________________________________________________________________
16. What support groups and/or networks have aided you in your business venture? (check all that apply)
Women’s professional groups _______ Social group _______ Community organizations _______ Close friends _______
Other (please specify) ____________________________________________________________________
17. Please rate yourself on the following management skills:
Skills Poor Fair Good Excellent N/A
Financial
Dealing with people Marketing
Sales
Idea Generation/Product Innovation Organization and Planning
General Management
18. Your age: Under 20 20-29 30-39 40-49 50-59 60 or over
19. Your highest school grade completed:
Intermediate . . . A bachelor’s degree . . . . area of specialization _______________ High school . . . A master’s degree . . . area of specialization _______________ Diploma (2 year degree) . . . A doctorates degree . . . area of specialization _______________ Institution (technical/trade) . .
20. Has your schooling been helpful in your business activities? Yes No If yes, what courses, or in what ways: ____________________________________________________________________________________
21. What do you feel have been your biggest personal problems during the establishment and running of your business? Please rank in order of importance (1 being most important and 4 least important)
Family stress ______ Time management ______
Loneliness ______ Dealing with males ______
Poor/lack of support ______ Dealing with drivers ______ Influence of bus. on personal relationships ______
22. Please check () the following table to indicate your work history while in school.
Intermediate/High School College Working
During School Year After School Year During School Year After School Year During After
Worked full time Worked part time Did not work Not applicable
23. Are you presently:
Single . . . Divorced . . . Married. . . Widowed . . . . Separated . . .
Please explain how your current status affects your business activities:
_____________________________________________________________________________________
24. Please describe your work history prior to becoming a woman business owner.
Years Job Title/Position
25. Were the work experiences gained in these positions helpful in becoming a business owner? Yes No If yes, please explain: ________________________________________________________________________
26. As a business owner, please identify those areas in which you need additional skills/knowledge. Marketing . . . General Services . . . . Purchasing . . . Technology and computers . . . . General Management . . . Language . . .
Interpersonal skills . . . Other (please specify) _________________________ Finance . . . ___________________________________________
27. Current Annual Income
Yours Spouse’s
520,000 JPY and less _____ _____ 520,001 – 1,380,000 JPY _____ _____ 1,380,001 – 3,440,001 JPY _____ _____ 3,440,001 – 5,170,000 JPY _____ _____ 5,170,001 JPY and up _____ _____
28. Is your business a family business? Yes No
If yes, how many members in the business are: Immediate family members _______ Relatives_______
29. How many generations of family members work in the business? _______
30. Would you be interested in a Women Entrepreneur’s networking group: Yes No If yes, which would you prefer: Internet base Personal
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