Withdrawal from Business by Small Enterprises (Japanese)

This paper analyzes the withdrawal from business of small enterprises in Japan, principally using the results of the Fact-finding Survey on the Retirement of Small-Enterprise Entrepreneurs conducted in November 2003. Generally it is difficult to conduct a wide-ranging survey of ex-proprietors to ascertain the circumstances of their withdrawal from business after the fact (especially in cases other than bankruptcy). However, this survey overcame this problem by targeting ex-proprietors who were policyholders in the Mutual Relief System for Small-Scale Enterprises. The results of the survey confirmed that some small business proprietors withdrew from business for economic reasons, while others withdrew for a variety of noneconomic reasons. Applying a probit model to identify the differences in the nature of the two types of withdrawal revealed several tendencies in the characteristics and economic statuses of proprietors to withdraw from business for economic reasons. Concerning the present work status of proprietors who withdrew from business, the study showed that a considerable number started new businesses or took up employment, and especially that those who withdrew for economic reasons were more likely to recommence work, particularly as employees.