Public Lecture Slides (2018.11.06) Why is Japan resisting changes?
The document discusses Japan's resistance to change, highlighting its traditional values and low female participation in leadership roles. It emphasizes the challenges faced by women in pursuing higher education and entrepreneurship, as well as societal norms that discourage risk-taking. The Japan Institute for Social Innovation and Entrepreneurship aims to address these issues by empowering women and fostering a more innovative mindset among the younger generation.
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Public Lecture Slides (2018.11.06) Why is Japan resisting changes?
- 1. Why is Japanresisting changes? Hiromi Murakami Japan Institute for Social Innovation and Entrepreneurship
- 2. Experience & Questions •Ideas vs. Institutions • 20 years – has mindset changed? • Society imbedded of traditional values • Founding JSIE • Resist with notion of “women empowerment” ranks 114th out of 144 nations Cambodia (99th) vs. Japan (complicated) Believe in a perfect world Tomodachi girl question
- 3. % of womenin senior management in Central Government (source: OECD Survey on the composition of the workforce, 2017) Japan
- 4. Japan has lowest% female undergraduate degree among OECD nations • Japan is 2nd highest among OECD: 60% of 25-34 year-olds attained tertiary education (2017). (Women 62% vs men 59%) • However, 43% of female first-time tertiary entrants chose short-cycle programs (2016), compared to 16% on average OECD nations. • 2-year colleges, predominantly women, aimed for particular jobs (secretary, health, social workers) financial and job-finding reasons. • Tuitions fees in bachelor in Japan are the 4th highest across OECD countries, after England, the United States and Chile, at USD 5218. Undergradu ate degree Female (%) Undergradu ate degree (STEM) Female (%) Japan 45.4 15.4 OECD average 58.2 31.1 Top nation 69.1 (Sweden) 41.4 (Poland) Bottom nation 45.4 (Japan) 15.4 (Japan)
- 5.
- 6. Japanese Women arediscouraged to get Advanced Degrees Japan Saudi Arabia ROK USA Israel
- 7. Slow changes UN Committeeon the Elimination of Discrimination against Women (1981-) • minimum age for marriage – 18 male 16 female both 18 years of age (2018) • Waiting period after divorce 6 months to 100 days (2016) • Surname choice of marriage – 2015 Supreme court ruled that one legal surname only. (“destroying family value”) • Inheritance for children outside wedlock ½ to equal (2013, 115 years) but still discriminatory birth registration remains.
- 8. Why risk-averse mentalitydominate? • Many startups originated immediately after WWII Why then and why not now? *Asset value that exceeds 1 trillion yen Post 1980s – Rakuten (1997) and Softbank (1981) • College graduates look for “stable” and “safe” company • Social norms = Low status for successful entrepreneur Less reward to risk-takers & start-ups • Society that does not give 2nd chance? 1940s 1950s 1960s 1970s 1980s 1990s 6 5 5 3 1 1
- 9. College graduates lookfor “stable” firms (1988 vs 2018) Non-science Science/engine ering 1 NTT NEC 2 Tokyo Marine NTT 3 Mitsui Real-estate Hitachi 4 Nissei Life Sony 5 Sumitomo bank IBM Japan 6 Fuji bank Panasonic 7 Itochu Fujitsu 8 Sanwa bank Mitsubishi Electric 9 Daiichi Life Honda 10 Mitsui trading Toshiba Non science Science/eng ineering 1 ANA Sony 2 JTB Ajinomoto 3 JAL Shiseido 4 Mitsubishi UFJ Meiji group 5 Tokyo Marine Suntory 6 Mitsui Sumitomo bank Toyota 7 HIS JR East 8 Mizuho Kagome 9 Sompo Japan Asahi Beer 10 Itochu JR Tokai
- 10. Japan: Minimum Start-uprates (Source: OECD The Innovation Imperative 2015) Japan USA
- 11. J Society valuesless on startups (Source: Global Entrepreneurship Monitor 2017/2018) 0 1 2 3 4 5 6 7 8 Cultural and Social Norms Entrepreneurial finance Gov't policy: support & relevance Gov't policy: taxes & bureaucracy Gov't entrepreneurship program Entrepreneurial education at school age Entrepreneurial education at post school stage R&D transfer Commercial & legal infra Internal market dynamics Entry regulation Physical infra Japan USA Israel
- 12. Low Entrepreneurial intentions (18-64adult in 54 nations) 0 10 20 30 40 50 60 70 80 90 Perceived opportunities Perceived capabilities Fear of failure Entrepreneurial intentions High status to succesful entrepreneurs Entrepreneurship as a good career choice Japan (54/54) Israel (10/54) USA (19/54) Saudi Arabia (1/54)
- 13. Lowest Entrepreneurial SpiritIndex (Source: Global Entrepreneurship Monitor 2017/2018) -1.5 -1 -0.5 0 0.5 1 SaudiArabia Lebanon Indonesia Poland Peru Kazakhstan UAE Sweden Columbia Netherlands Israel Chile Ecuador Panama Estonia Guatemala Vietnam Canada USA Brazil Madagascar Australia Cyprus Morocco Iran Luxemburg Uruguay Mexico Malaysia Thailand Slovenia Croatia Latvia ROK Switzerland Ireland Germany China UK Slovakia India Qatar SouthAfrica Spain Egypt France Argentina Bulgaria PuertoRico Taiwan Italy BosniaandHerzegovina Greece Japan USAIsrael Japan
- 14. Low Venture capitalinvestment %GDP (Source: OECD Entrepreneurship at a glance 2017) Japan Israel USA
- 15. What factors constrainJ Entrepreneurship? (Source: Global Entrepreneurship Monitor 2017/2018) • Unfriendly Entrepreneurial Finance • Culture and Societal Norms • Low Entrepreneurship education at school age Focus on rule-abiding not encourage creativity Everything is “NO” except few things (JP) kids always asking permissions, train them to think “in the box” Everything is “YES” except few things (US) • Disconnect from global entrepreneurs’ community (limited English capability?)
- 16. A Closed Societyresisting changes • Strong VETO power, powerful insider groups • Incumbent (trusted) >> new comers (unknown) Taxi/hotel industry Uber/Airbnb • Lack of external information & external communication (Limited English capability) • Biased Media – inward-oriented views • Low dynamics of market entries • Little Political changes – people prefer status-quo
- 17. LDP supporting rateby generations Younger generation has relatively higher supporting rate Source: Toyo Keizai online
- 18. Japan’s problem • Innovationnot fully realized = not only technical development, penetration of new social value = impact on people’s lives changing behavior & perception • Instead of encouraging, building walls for new ideas = Blocking it before penetrating, if perceived as threat = Passing the bill made hotels and Airbnb more expensive = Could have enjoyed fruit of penetration • Consumers are neglected -- Less option, paying higher prices -- never experience full benefit, missing spin-off effects (buy property) -- can be innovation-drivers (engineer’s story) • Too many restrictions, regulations, instructions -- People outside Japan rather enjoy disruptive changes and inspire new services -- Sara’s story (need creativity to be successful as Airbnb host) -- What are they afraid of? • Innovative ideas crushed at birth • Complacency
- 19. JSIE’s Mission • Linkingunderutilized talented women with entrepreneurship • Younger generation to outgrow “the box” • Encouraging Risk-taking spirit • Provide opportunities to think beyond Japan - Accelerator program in Silicon Valley - Women leadership program in Boston • Use English as a tool to break barriers
- 20. • www.jsie.net/en • Women’sInitiative for Sustainable Empowerment (WISE) summer program WISE 2019 in Kyushu (May 2019) • First Movers Forum- Nov. 20th @Academy Hills Library Tokyo • Washington Women’s Dialogue- Nov. 13th @ Mansfield Foundation DC • Global Peer Mentoring Network
- 21. www.jsie.net/en Thank you! Please joinus Nov. 20 evening @ Academy Hills Library (Roppongi) First Movers Forum in Japanese
Editor's Notes
- #9 Post WWII: Honda, Sony, Nintendo, Kyocera, while after 1980s, there are only 2 (softbank and Rakuten) that are asset value of 1 trillion yen or more.
- #13 1) whether the respondent knows someone who has started a business in the past year (entrepreneurial awareness) 2) whether the respondent thinks there are good opportunities for starting a business in their local area (entrepreneurial opportunity perception). 3) whether the respondent thinks they have the knowledge, skills, and experience to start a business (entrepreneurial self-efficacy).