Japan stands at the dawn of a new golden age for entrepreneurs. Hidden in the darkness of the current recession, the forces of human creativity, economic necessity, personal ambition and realistic opportunity are beginning to combine. The key dynamics driving post-COVID-19 Japan will be the rise of Japan as a startup nation.
Why? Recessions always create the foundation for recovery. The necessary ingredients for a new venture – land, labor and capital – are being freed up, becoming cheaper, thus making it more opportune to start something new. In Japan, this is particularly true since by far the biggest constraint and obstacle has been the shortage of labor.
Just 15 months ago, for every job offer there were fewer than 0.4 applicants. When even the big brand Fortune 500 companies have problems hiring people, even the most ambitious startup entrepreneur will have to think twice about starting or growing his or her venture. No team, no dream. Japan’s labor shortage has been a tremendous constraint on entrepreneurship; and the COVID-19 recession is starting to fix this.