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A factor analysis of business start-up rates in Japan: contemporary and historical context

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  • Nobuo Kobayashi

    (School of Economics, Kwansei Gakuin University)

Abstract

This study analyzed the factors that determined the regional business start-up rates in Japan between 2012-2014, taking into account the influence of historical regional characteristics in addition to contemporary social and economic factors. As for the industrial structure, regions where the ratio of service sectors is relatively high tend to have high start-up rates. Regarding the employment environment, unemployment tends to promote business start-ups. In addition, there was a tendency for the business start-up rate to increase with a high ratio of foreigners, but a relatively high proportion of highly educated personnel had no effect. Regarding the influence of historical characteristics on business start-up behavior, two conflicting directions were recognized. In regions focused on rice production, business start-up behavior has historically been suppressed. In contrast, in recent years there has been a tendency to promote business start-ups in areas in which the ratio of rice cultivation is high, reflecting changes in agricultural policies, such as incentives for corporations to enter agriculture and support for conversion from individual farmer to corporate management. Nobuo Kobayashi

Suggested Citation

  • Nobuo Kobayashi, 2020. "A factor analysis of business start-up rates in Japan: contemporary and historical context," Discussion Paper Series 202, School of Economics, Kwansei Gakuin University.
    • Handle: RePEc:kgu:wpaper:202
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    1. Michael Fritsch & Michael Wyrwich, 2023. "Entrepreneurship in the Long-Run: Empirical Evidence and Historical Mechanisms," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 19(1), pages 1-125, January.

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    More about this item

    Keywords

    business start-ups; industrial structure; historical context; agriculture School of Economic;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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