Economic Development and Small Businesses in Japan\(^1\)
Insights into Economics and Management Vol. 12,
30 June 2021
Japan's economy lost most of its industrial production force because of World War II. However, from 1955 onwards, Japan achieved rapid economic growth, joining the group of the world's most developed countries by the early 1970s. The period from 1955 to the early 1970s is generally regarded as a period of High Economic Growth. There are various opinions regarding the factors that enabled Japan to attain such high economic growth, referred to as the Economic Miracle. It can be said that Japan's post-war economic development was the result of advancements in technological innovation based on financial assistance from the United States, which established Japan's position in the world economy, loans from the bank, and the introduction of technology from abroad. Needless to say, the "High growth of post-war Japanese capitalism has not been achieved only by giant companies alone. On the contrary, without small businesses, especially in their roles as subcontractors, it would have been impossible to achieve such high growth, which has drawn attention internationally." (Nomura, 1981; 126) The purpose of this article is to make clear the role of small businesses in the process of economic development.
- Economic development
- small and medium-sized enterprises