23. Japan
23.1. SMEs in the national economy
Only a very small fraction of Japanese enterprises are large. Within the SME sector micro-enterprises predominate, in both number of firms and number of employees.
23.2. National policy framework to support SMEs in public procurement
The objective of supporting SMEs in public procurement is elaborated in the Act on Ensuring the Receipt of Orders from the Government and Other Public Agencies by Small and Medium-sized Enterprises, and the Basic Policy on State Contracts with Small and Medium Enterprises. This Basic Policy sets the goal for each fiscal year, including the target amount and the ratio of contracts with SMEs and micro-enterprises to the total budget of state contracts. Cabinet approval was given on 28 August 2015 for setting 54.7% as the target contract ratio among SMEs and micro-enterprises in fiscal 2015, and for roughly doubling the ratio of state contracts with new SMEs over the three years from fiscal 2015 to 2017, compared to fiscal 2014 (estimated at around 1%).
23.3. Implementation mechanisms
As a follow-up to the Basic Policy, a white paper1 was produced that included the following:
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The Minister for Economy, Trade and Industry issued a request regarding the Cabinet approval of the Basic Policy on State Contracts with Small and Medium Enterprises to the heads of each agency and ministry, prefectural governors, all municipal mayors, and mayors of the Tokyo special wards (1 805 organisations), and also requested that they make efforts to increase opportunities for SMEs and micro-enterprises to receive orders.
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From August to September, 50 information sessions (Councils to Promote Local Access to Public Sector Demand) were held throughout Japan to actively raise awareness of the Basic Policy in regional areas.
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A conference was organised to discuss policies for information sharing and co-operation regarding initiatives to promote procurement from new SMEs in regional areas.
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A “Guide to contracts in the public sector” was produced and distributed to central and local government agencies and other commerce and industry-related organisations.
23.4. Monitoring performance
The Small and Medium Enterprises Agency measures the share of contracts awarded to SMEs.
Reference
[1] OECD (2017), Financing SMEs and Entrepreneurs 2017: An OECD Scoreboard, OECD Publishing, Paris, https://doi.org/10.1787/fin_sme_ent-2017-en.