In 2021, Japan's Ministry of Economy, Trade and Industry (METI) introduced Japan's Startup Visa, aiming to attract foreign entrepreneurs to start businesses in Japan. Before that, many G20 member countries and some regions had attracted more foreign entrepreneurs to start businesses in their own countries by issuing “startup visas” and simplifying the entry procedures for entrepreneurs, which not only facilitated their technological innovation and economic development, but also created more job opportunities for their citizens. For example, applicants for “startup visas” of UK are no longer limited to recent graduates, nor to previous employment background. In addition, there is no capital threshold, and the time limit is extended from one year to two years. The Canadian government has appointed two angel investment fund organizations to review the business plans of those applying for “startup visas”. The state government of South Australia cooperates with business incubators to select foreign entrepreneurs with innovative business ideas and feasible business plans, and issue them business visas to attract them to do business in Australia.
Based on the limited size of the domestic market and the large population density, the Japanese government pays attention to the international development of domestic entrepreneurs. For example, the J-Startup Program of Japan External Trade Organization (JETRO) aims to push Japanese startups to the international market. Previously, Japan has never had visas specifically for international entrepreneurs. Therefore, it was not easy to start a business in Japan. For example, international entrepreneurs could only apply for a business manager visa. There are some conditions: (1) office space; (2) capital fund of no less than 5 million yen; and (3) two full-time local employees. It is difficult for entrepreneurs to meet these rigid requirements.
The newly issued startup visa provides foreigners who intend to start a business in Japan with 6 to 12 months, which can be used to prepare for starting a business and meet the requirements of a business manager visa. This is a good transitional form for international entrepreneurs who want to start a business in Japan. At present, this visa has, however, not been implemented nationwide, and only 13 regions have been granted licenses, mainly some economically developed regions. The reason is that people in Japan who want to be qualified for the “startup visa” should prepare and submit the corresponding Plans for Managing and Supporting Business Startup Activities by Foreign Entrepreneurs in advance and be recognized by the METI. Entrepreneurs applying for visas need to submit business plans and have them reviewed.
Requirements for startup visa vary from region to region. Taking Fukuoka as an example, entrepreneurs are required to set up enterprises there that may improve the international competitiveness of Fukuoka industries or increase job opportunities. Key industries also vary from region to region. For example, Kyoto pays more attention to tourism and agriculture and aquatic products, while Kanagawa pays more attention to IT industry. The purpose of the Japanese government’s “startup visa” policy is to attract external vitality to promote domestic economic development, activate the business environment, enhance industrial competitiveness, and accelerate economic recovery after COVID-19.
By observing the startup visa policies of G20 members, we found that 8 of the 20 economies have issued valid “startup visas” in the whole country, including Australia, Brazil, Canada, France, Italy, Japan, South Korea and UK, or some parts of China to attract international innovative entrepreneurs to start businesses in their own countries.
“Facilitator”, an Active Factor Serving the Development of Entrepreneurship
In recent years, a new role has appeared in the entrepreneurial ecology, and gradually played some roles of linking, guiding and driving. They are various “facilitators”. Facilitators themselves are different from mentors, as explained below. Most mentors are employed by commercial organizations, and their role is to empower entrepreneurs in terms of thinking and skills. Their strengths lie in rich entrepreneurial experience, understanding pain points, and being good at passing on the ability to solve problems by themselves. Most of the “facilitators” are employed by the government. In a certain sense, they are providers of entrepreneurial services, offering guidance and support at all stages of entrepreneurial development. Their strengths are understanding pain points, being good at helping entrepreneurs find available resources and platforms, and avoiding risks and saving costs as much as possible.
In 2018, the Australian government launched the “Entrepreneurship Facilitator” program. Entrepreneurship facilitators are professionals appointed by the Australian Department of Education, Employment and Workplace Relations to promote entrepreneurship in the country. Their main responsibilities include: (i) encouraging startups by actively providing entrepreneurial information and professional advice; (ii) providing targeted guidance through one-on-one talks, workshops and activities; and (iii) guiding entrepreneurs to get more government support. Up to now, three years after the launch of the program, 23 regions in Australia have set up entrepreneurial facilitators, which have achieved initial results.
If you want to start a business, only dreams are good enough? Professional service support of entrepreneurship facilitators helps startups.
Stewart, an Australian youth, has always had a dream of starting a business. He hopes to make spirits independently all the way to bring some unique flavor to the spirits market. But he didn’t know how to start a business. He didn’t know how to realize his dream. However, he took the right first step, that is, he directly contacted the local entrepreneurial facilitator who helped him formulate the marketing plan according to his ideas, and sought the approval of the local government and the license needed to open the winery. Finally, Stewart created Bluff Distillery. He said, “the entrepreneurial facilitator and his team did a great job when I started my business. I knew almost nothing about those procedures and licenses, and their expertise helped me a lot. Later, during the development of my brand, my entrepreneurial facilitators continued to give me useful tips and suggestions. In a word, they are wonderful.”
Want to start a business, do not know whether it is feasible? Excellent insights of entrepreneurial facilitators, indepth analysis of business ideas.
In the first half of 2020, Jordan and Jye worked fulltime in a telecom company. Due to some local pandemic prevention and control measures, their working hours have been reduced. In the meantime, they noticed that many people went into stores to buy equipment to communicate with family and friends online. Usually, these people would return to the store within a few days for technical help, including how to set up equipment. Because the sales volume is too high, the sellers were unable to provide technical support for these customers, but the customer service price of the manufacturers was also relatively expensive. Jordan and Jye believed that this was an opportunity to set up a company to provide low-cost technical support services for people and help them make full use of existing equipment. Their target services were mainly for the elderly because they notice that this group needs technical support services more. So, was this idea feasible and in line with relevant government regulations?
Jordan and Jye sought the help of local entrepreneurial facilitators, learned about the conditions required for starting a business and the compliance requirements to be met, and discussed with entrepreneurial facilitators whether the business idea was feasible. Entrepreneurial facilitators helped Jordan and Jye build their own business model, ensured that they comply with relevant laws, helped build their website and marketing strategies, and suggested ways for them to further develop their business in the future. Eventually, Jordan and Jye founded Newcastle Technical Support Company. “Entrepreneurial facilitators provided us with very valuable insights, and the process of registering a business, setting up an ABN and making a business plan was an unfamiliar task for us, while entrepreneurial facilitators provided us with a one-stop shop service. ”
In the context of COVID-19, is the business model affected? Entrepreneurial facilitators provide timely transformation support.
Since September 2019, local startup facilitators have been supporting Meredith's business -- “From Kitchen to Table”, providing support for the business's social media marketing and goal setting. Before the pandemic, Meredith provided kitchen utensils, tableware and fine food, as well as cooking courses and international food tours through storefronts. When the COVID-19 caused the store to fail to operate normally, Meredith asked her business facilitator for help. With their backing, Meredith had introduced online stores and video cooking tutorials, and was also considering developing domestic gourmet tours as an alternative to international travel. That flexibility enabled Meredith to continue operating during the pandemic. Their online store has attracted many new and old customers, while the introduction of online cooking videos has strengthened existing customer relationships.