With the dedication to cultivating an inclusive economy that leverages the strengths of a diverse international community, Japan is taking strides to modify its immigration framework by loosening the immigration policies and requirements for immigrants with entrepreneurial ambitions. Those regulatory adjustments are intended to lower physical and psychological barriers in the process for acquiring a business manager visa, essential for those planning to launch or invest in Japanese ventures.

The Japanese government is poised to update the business manager visa category to be more welcoming to international entrepreneurs during fiscal 2024. This overhaul includes scrapping certain stipulations that currently govern international applicants wishing to set up a business in Japan. Under the new policy, applicants will no longer need to meet the current requirements of investing a minimum of five million yen, hiring at least two full-time local employees, or securing physical office premises. Instead, they will be eligible for a two-year residency permit, with the option to use virtual or shared office spaces. This relaxation of regulations is anticipated to ignite the entrepreneurial spirit in international startup founders with limited funding, as well as in aspiring business owners who have honed their skills through study and work in Japan.

Since 2015, the Japanese government has been refining its visa policies to draw in entrepreneurial minds from around the world. In 2015, the Cabinet Office introduced the National Strategic Special Zones, with 13 designated areas where 380 international applicants as total obtained a six-month "startup visa" as of April 2023. This visa is granted without the usual mandates of investing five million yen, securing a physical office, or hiring two full-time local staff members, provided that the applicants present their business plans that are approved as promising and feasible by the local municipalities within those zones. From 2018, the Ministry of Economy, Trade and Industry, along with the Ministry of Justice, broadened the scope of the startup visa program to include additional municipalities beyond the original strategic zones, offering a one-year residency permit. Furthering their initiative in 2020, the ministries turned their attention to colleges as a pool for budding global entrepreneurial talent. They targeted certain colleges with programs promoting entrepreneurship among international students and offered a two-year residency permit to those college students who demonstrated entrepreneurial aspirations and met certain criteria.

Despite the government efforts to draw more global entrepreneurial talent into Japan through the revamped immigration policies, the nation has seen only modest success in positioning itself as a prime destination for international business owners. While the number of international entrepreneurs in Japan has indeed risen, with a twofold increase to 35,000 since 2015 under visas like the business manager and startup visa, this growth is largely due to international business-minded residents who have already spent time in Japan for education or employment during their formative years, rather than a new influx of global talent.

The unique challenges of the Japanese business landscape is remaining formidable for international entrepreneurs, despite more accessible immigration policies that aim to unlock the Japanese market. Entrepreneurial talent from overseas embarking on their first Japanese venture must invest substantial time and efforts in grasping the cultural nuances of local business practices, overcoming language barriers, and establishing local networks for support and guidance. For international residents who have acquired fluency in the Japanese language and have woven into the local fabric, obtaining long-term financing is more likely to remain a hurdle. Financial institutions tend to be cautious, often limiting investment and loans to the period of the entrepreneur’s legal residency, adding another layer of difficulty for those aiming to sustain and grow their businesses in Japan.