Nurturing Entrepreneurship: What policymakers can do

Richard Katz, the author of The Contest for Japan’s Economic Future, discusses what policymakers can do to promote more entrepreneurship. He believes the Kishida Administration was right to call for more high-growth SMEs and unicorns. Japan cannot revive its economy without a new cohort of dynamic, innovative firms. The good news is that generational and technological changes and globalization provide the basis for resurrecting the kind of entrepreneurship that propelled the postwar economic miracle. However, these trends cannot reach critical mass unless they are amplified by government policy. At the same time, Tokyo must help remedy remaining obstacles, particularly insufficient access to external finance from capital markets and banks. Unfortunately, the few steps taken by Tokyo, such as the tax incentive for business angels, have been poorly designed, particularly in comparison to programs in other countries. Mr. Katz will present an agenda for future action.