100 likes | 266 Views
Entrepreneurship in post-war Japan. The war wiped out many of the gains Japan had made since 1868. About 40% of the nation's industrial plants and infrastructure were destroyed, and production reverted to levels of about fifteen years earlier.
E N D
Entrepreneurship in post-war Japan
The war wiped out many of the gains Japan had made since 1868. About 40% of the nation's industrial plants and infrastructure were destroyed, and production reverted to levels of about fifteen years earlier. Post-war overall economic condition
Creates jobs (help decrease unemployment) • Pays government taxes • Creates demand for products, which in return creates other businesses • Introduces new technologies to the market • Stimulates the economy by instilling confidence in people The importance of entrepreneurship development
There are two ways to do that: • Through financial assistance • Through providing entrepreneurs with knowledge and information So how did the Japanese government support entrepreneurs?
Subsidies (grants) for those who decided to start their own business • 5% reduction in loans for each small business • Tax breaks to businesses that made the kind of investments that created jobs Financial assistance aspect
Support for export-oriented businesses (in other words, support in research for foreign partners) • Cut as much paperwork and bureaucracy out of the system as it was possible • All-Japanese Association of Entrepreneurs "Support of Japan" (the main purpose of which was to protect entrepreneurs' interests and rights) Information aspect
The thing is that United States took over Japan from 1945 to 1952. Their assistance totaled about $1.9 billion during the occupation. • They were getting prepared for the ideological battle between Capitalism and Communism (Soviet Union). So America’s main purpose wasto bring many countries of the world on to their team. So where did all the money come from?