The Japanese government will invite small and midsize businesses to declare sales targets of ¥10 billion or more from fiscal 2025, aiming to support their growth and bolster regional economies.
The Small and Medium Enterprise Agency will provide subsidies to boost capital investment to companies that make such declarations, expecting that such businesses will make significant contributions to local economies.
From around May, the agency will invite applicants for the project from about 90,000 small and midsize companies with annual sales of ¥1 billion to less than ¥10 billion.
Applicants will be required to submit their sales targets and specific plans to realize them, which will be disclosed on a special website.
For companies making such declarations, the agency will support their large-scale capital investment projects, providing subsidies of up to ¥500 million to build and improve factories.
The agency under the Ministry of Economy, Trade and Industry is also considering granting tax incentives and holding events for business managers to build networks.
According to the ministry, Japan has about 4,500 companies with annual sales of ¥10 billion or more. But many of them are concentrated in metropolitan areas.
"The growth of small and midsize companies in rural areas is essential for regional revitalization," a ministry official said. "First of all, we'll work to get many companies to make declarations."
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