A Study on the "Elimination of Small and Medium-sized Enterprises"
##article.authors##
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Yukari MIZUNO
Ritsumeikan Business School, Ritsumeikan University
https://researchmap.jp/MY_004611
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Keita KATO
Graduate School of Humanities and Social Sciences, Saitama University
https://researchmap.jp/keitakato01
- Takashi SHIMIZU Graduate Schoolf of Arts and Sciences, The University of Tokyo
DOI:
https://doi.org/10.51094/jxiv.1537Keywords:
amount of SMEs, zombie, productivity, growth, SME policyAbstract
This paper summarizes the current debate surrounding Japanese small and medium-sized enterprises (SMEs) and explores future directions for SME policy. Critics argue that the small scale of Japanese SMEs limits their ability to achieve economies of scale, resulting in low productivity. Additionally, policies based on the Small and Medium Enterprise Basic Act may discourage growth by reducing incentives for expansion.
The paper examines these issues through an analysis of SME numbers and productivity, case studies, and policy evaluations. The central research question—“Are Japanese SMEs a drag on the Japanese economy?”—is addressed with the conclusion that some SMEs hinder economic growth, while others do not.
However, the study highlights a persistent issue: a portion of SMEs deliberately choose to remain small in order to benefit from tax incentives. The paper emphasizes the importance of policies that foster a business environment encouraging SMEs to grow into larger enterprises.
Conflicts of Interest Disclosure
The authors declare no conflicts of interest associated with this manuscript.Downloads *Displays the aggregated results up to the previous day.
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Submitted: 2025-09-20 02:21:49 UTC
Published: 2025-09-26 00:24:00 UTC
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Yukari MIZUNO
Keita KATO
Takashi SHIMIZU
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