Recommendations for Creating New Businesses:
Building an Economy and Society that Nurtures the Entrepreneurial Spirit

Keidanren
(The Japan Federation of Economic Organizations)

Introduction

The goal of this report is to stimulate the creation of new industries and businesses which embody an entrepreneurial spirit and to encourage existing firms to launch innovative new businesses. The report first analyzes the reasons behind Japan's slow progress in the arena of new industry and business creation and then proposes economic and social reforms which will enable the Japanese people to enjoy the benefits of their economic success.

The Committee's wide-ranging recommendations focus on creating new industries and businesses that will support Japan's economic future. In this context, the report encompasses policy recommendations for both the public and private sectors and encourages Japan's corporate leaders to become true entrepreneurs.

After careful evaluation by the Committee, the initial draft of the report was widely circulated via the Internet. The final draft benefited significantly from suggestions made by more than 2,000 individuals, both at home and abroad, who are interested in the development of new industries and businesses. The Committee wishes to express its gratitude to all who participated, particularly to those who sent in specific suggestions.

Chapter I : Overview

1. Why Is New Industry And Business Creation Necessary?

2. Impediments To The Start-Up of New Industries: The Direction of Reform.

Chapter II : Building The Environment Necessary For New Industries and Businesses.

1. Realization of A Free And Vigorous Market Economy.

2. Adoption of The Stock Option System:

3. Reform of The Taxation System:

4. The Free Flow of Human Resources:

5. Promotion of R&D That Creates Business:

Chapter III : Creation of Venture Businesses

1. Stimulating The Start-Up of Independent Businesses And Economic Growth:

2. Improvement of The Fundraising Climate:

3. The Incubation Function and Regional Revitalization:

4. Responsibilities of the central and municipal governments:

Chapter IV : Problems in Creating Corporate Ventures -- Developing New Business Within Existing Firms

1. Progress Report on "Creation of New Businesses" :

2. Promotion of Corporate Venture Businesses:

3. Large Corporations and the Corporate Alliance:

4. Creating the Entrepreneurial Spirit Within Each Employee:

Chapter V : Creating A Self-Reliant Society That Will Breed Entrepreneurs

1. Reform of The People's Perceptions:

2. Long-Term Educational Reform And Fostering Creative Individuals:

Chapter VI : Keidanren's Role