Japanese social enterprises: major contemporary issues and key challenges

Abstract

Purpose -The purpose of this paper is to discuss the emergence of social enterprise in Japan by looking at the predominant types of social enterprise in the country, their industries and target groups, their challenges and strength. Design/methodology/approach -The paper adopts an analytical approach, building on previous work; it is grounded on the social construction theory, which has the advantage of apprehending social phenomena from different viewpoints. Findings -The study identifies three different conceptual approaches to explain the emergence of social enterprise in Japan. It then demonstrates that there exists a link between the approaches identified and the emerging social enterprise types in the country. Furthermore, it discusses the strategies used by those emerging social enterprise types in choosing their particular legal forms (in the absence of a specific legal form for social enterprise in Japan) and shows how this choice is normally determined by the constraints associated with those organisational forms. From this perspective, the paper outlines the major contemporary issues affecting social enterprises in Japan and focuses on two key challenges: the systems of regulation and the financial viability. In discussing the financial challenge it presents the dual attitude of the Japanese government towards the development of the social enterprise sector. Originality/value -This paper builds up the theoretical foundations for the understanding of the social enterprise sector in Japan and it will stimulate further researches on the future development of the sector.

A Conceptual Framework for Developing Women Social Entrepreneurs in Japan

“…First, constraints are present in the field of social enterprise in Japan (Laratta et al, 2011). Although the government has changed the policy to encourage donations to non-profits through tax incentives upon the renewal of NPO's act in 2012 (Fujii et al, 2013), a cultural and traditional attitude among Japanese people causes them to refrain from donating money to non-profits (Laratta et al, 2011). This is primarily because people formerly had less trust in the non-profit sector than the state and market sectors.…”

“…Multi-layered challenges exist in fostering women entrepreneurs in Japan, including socio-cultural traditional views on women’s roles and expectations, a lack of motivations, and a lack of support systems (Nakamura & Horimoto, 2017). First, constraints are present in the field of social enterprise in Japan (Laratta et al, 2011). Although the government has changed the policy to encourage donations to non-profits through tax incentives upon the renewal of NPO’s act in 2012 (Fujii et al, 2013), a cultural and traditional attitude among Japanese people causes them to refrain from donating money to non-profits (Laratta et al, 2011).…”

Asian Social Enterprise Models in a Worldwide Perspective

“…4 For instance, Alter (2007) also focuses on the place and role of market logics to put forward a typology based on mission orientation, the nature of target markets and the degree of integration of business activities in social programmes. 5 As already mentioned in the introduction of this book, the SEJ special issue included contributions by Yu (2011) for China, Chan et al (2011) for Hong-Kong and Taiwan, Laratta et al (2011) for Japan, and Bidet and Eum (2011) for South Korea. 6 Santos et al (2009) have also been among the pioneering authors trying to describe the emergence of SE in Asia.…”

Social entrepreneurship research in Asia-Pacific: perspectives and opportunities

“…Social motivation plays a significant role in being socially entrepreneurial. Laratta et al (2011) further postulate three different social entrepreneurship approaches in Japan: earned-income non-profit, non-profit co-operative and social business. Regulatory norms and financial feasibility are factors to the choice of approach.…”