The presence of foreign entrepreneurs in Japan is growing. In 2023, the number of people granted Business Management visa status, which allows the holder to start or manage a company, reached 6,335; almost double the number from the previous year. There has also been an increase in the number of other visa holders—such as foreign students and engineers—establishing companies in Japan. This is due to a slew of measures by the government to boost Japan’s startup ecosystem, including the relaxation of the requirements for the entrepreneur visa status and the introduction of startup visas in certain regions.

The activities of these foreign entrepreneurs are bringing new possibilities to Japan's economy, where the government has also set a goal of creating 100 unicorn companies in its “Five-Year Plan for Startup Development.”

However, there are also issues. There are many problems that foreign entrepreneurs face, such as the complicated procedures for startup visas, the weak yen, and the small scale of venture capital in Japan.

While 55% of unicorn companies in the US are founded by immigrants, the number of unicorn companies and the percentage of foreign managers in Japan remain low. As the number of foreign entrepreneurs is increasing, measures such as deregulation and the expansion of the VC environment are needed to make Japan an even more attractive market. Creating an environment that attracts diverse human resources and risk money will be the key to driving Japan's next-generation industries.

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