We all know that for long-term sustainable economic growth through technological advancements, entrepreneurship. and innovation is the two lifeblood of the economy.Japan an economy which has struggled every time is now on the verge of radical change which is going to remove all the stains of its economic failures. The economy needs no introduction but its upcoming growth is going to surprise the global economy. Till yesterday every citizen was looking ahead for government jobs in Japan. They studied hard to get government job which is secured and used to be known as prestigious one. Still, it’s being considered as a prestigious job but the next generation is moving away from these jobs. Blessings of technology advancement and internet have changed the landscape of the next generation outlook towards the job market. The next generation of Japanese are risk-taking and they have the courage to go beyond the traditional employment atmosphere. Change in the long-term behavioral segment of any economy is the key path to identify opportunities for growth as well as to identify the failure points.
Entrepreneurship is being promoted in Japanese colleges. The insect of innovation has bitten the young generation and now it’s the driving the culture of entrepreneurship within Japan. Well paid jobs of Banking and management are being left by the new generation of Japanese and they are joining the club on innovation and entrepreneurship. Japan employment style has also changed. Companies now hire more temporary employees, and those people are more likely to start companies to gain a better sense of security than being a temporary employee. Hence entrepreneurship is just about to boom out in Japan.
Bridging the gap in various sectors like healthcare, Agritech, Internet of Things and AI are driving around 80% of the innovation market and funding is also happening to that tune only. Universities of Tokyo have taken new initiatives to promote entrepreneurship. These universities are not focusing towards jobs anymore; they are driving innovation-based entrepreneurship. Just like “Silicon Valley” they have created “Hongo Valley” which is now the birth land of a new type of social-based entrepreneurship. Large size incubators are being created in Japan for driving innovation in bridging the gap between the social aspects.
The huge inflow of capital will be attracted to Japan going ahead followed with stupendous technological penetration within the economy. Social gaps have been a huge opportunity for the growth of entrepreneurship within the economy. Japan is just working on these steps. Over the next 3 to 5 years Japan will be a big hub for innovation promoting social entrepreneurship and creating a new generation of exponential growth. Hongo Valley will be a revolution for the next generation of Japanese. Time is just about to prove the same.
The only glitch the country faces had faced previously is that early sell-off of companies under entrepreneurship as they lack English language and hence they could not take their innovation to the global platform. But this problem has been resolved since the next generation has good English language training and they are well capable to take it to the world.
This leads to a significant change for the Japanese economy in the coming days. Global recession could be survived and avoided if social gaps are being filled up with innovation and technological advancements.
Ease of doing business and internet of things is changing the landscape of the Japanese economy going ahead. At the same time cultural risk aversion, funding at an inflexible labor market remain as challenges. Consultants across the globe should look towards Japan as the startup culture was just born in Japan. Nobody knows how to make a startup in the current situation. The regulatory aspect of the Japanese economy towards entrepreneurship is changing which gives the huge potential for newcomers to up and start their innovation culture. Opportunity for investors is that it is easier for companies in software development, electronic commerce, and biotech to get funding, but investors are still conservative in other sectors. Hence investors could look beyond these segments to invest and grow the wealth from social entrepreneurship in Japan. Japan economy will be an attractive point for the global economy going ahead. Hongo Valley is all set to make a change.