System for Promoting Local Enterprises in Rural Areas in Japan

While there is increasing interest in living in rural areas, especially among young people, there are not enough opportunities for them to earn a secure income in these areas. However, there are areas where entrepreneurs by migrants are in abundance such as Nishiawakura-son village, Okayama prefecture which is a case of this study. This study aims to investigate the mechanisms built in these areas and how they are connected to the chain of entrepreneurship. It further analyzes the structure of the regional system surrounding entrepreneurship. First, a preliminary documentary survey was conducted, and key persons/actors in the village, such as government officials, entrepreneurs, and immigrants were identified. Second, survey interviews of the representatives were conducted. We found that the entrepreneurial process can be classified into three stages : building relationships, trial/commercialization, and expansion/establishment. Additionally, entrepreneurs and migrants are supported by the local government and a few organizations based on their entrepreneurial stage. There was almost no direct relationship between entrepreneurs and local residents. However, the local government has built a foundation for establishing relationships for new entrepreneurship, and the government-private collaboration system is creating a chain of entrepreneurs. To solve regional issues, the local government has created a system to bring in external human resources and capital and develop private sector companies through collaborative projects, while outsourcing its own resources. In doing so, the process becomes a form of capital for the region, thereby attracting new capital.