経済｜外国人起業、法改正で4割減少 / Economy | Foreign Entrepreneurs Decrease by 40% Due to Legal Reforms

Summary

This legal amendment is believed to have made it particularly difficult for small businesses and individual entrepreneurs to start up.

It has been revealed that the requirements for obtaining the residency status “Business Management” for foreigners wishing to start a business in Japan will be tightened in October 2025, leading to a nearly 40% decrease in new business establishments by foreigners. While the number of startups post-COVID has reached a record high, it has also been pointed out that this increase may be influenced by a surge in applications before the tightening of regulations.

Dialogue

This dialogue is fictional and based on the article.

Log: Have you seen the recent data on foreign entrepreneurs? It looks like the number of businesses has dropped by 40% due to the impact of legal reforms.
Chako: Really? That sounds like taking a break in a board game!
Log: Definitely, the stricter regulations have made it harder for small businesses to get started, which is a big factor.
Navi: It seems that there has been a suppressive effect due to the tightening of regulations.
Chako: Then why did we see an increase in startups after the pandemic?
Log: It might be because many people rushed to start businesses before the changes took effect.
Navi: I believe the influence of the situation before the regulatory changes is significant in that regard as well.

Admin’s Note

The decrease in foreign entrepreneurship due to this recent legal amendment is a significant issue from the perspective of diversity in the economy. As Chako mentioned, it feels like progress has come to a standstill, which is a harsh reality for those aspiring to start their own businesses. This is especially concerning for small enterprises, as it will likely impact the local economy as well. I believe we need to consider some form of support measures going forward.