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Osaka's startup ecosystem: support, visas, and networking

October 10, 2024

Osaka - basic information

Osaka is the name of Japan's second-biggest city and the prefecture that houses it. Offering visitors and residents alike a unique experience through the blending of history, cuisine, and entertainment, it is often seen as an easier and more enjoyable place to live among foreign residents when compared to Tokyo due to its more open and casual culture.

Osaka has a long history as a commercial and economic hub, with bustling areas like Dotonbori and Shinsaibashi being perfect places to enjoy gourmet food. Additionally, Osaka is a treasure trove of entertainment, playing host to concerts, theatre, and theme parks like Universal Studios Japan.

Living Costs

Let's explain the costs of living alone in Osaka, based on data such as the Consumer Price Regional Difference Index published by Japan's Ministry of Internal Affairs and Communications in 2022.

Nationally, the cost of living in Osaka tends to be relatively high. However, Osaka is known as Japan's second city after Tokyo, and in that comparison housing and daily living expenses are generally more affordable.

Regarding rent, in central Osaka, the average rent for a 1R (studio) or 1K (one-room apartment with a kitchen) is about 70,000 to 80,000 yen per month. In suburban areas farther from the city center, you can find apartments for around 50,000 to 60,000 yen per month.

Next, food expenses in Osaka are slightly higher than the national average for both dining out and grocery shopping. On average, food costs for someone living alone range from 30,000 to 40,000 yen per month.

As for transportation and utility costs, Osaka slightly exceeds the national average. The public transportation system in Osaka is well-developed, and using commuter passes or IC cards can help reduce daily commuting costs. However, you should still expect to spend around 10,000 to 15,000 yen per month on transportation.

In total, when considering rent, food, transportation, utilities, and other expenses, the monthly cost of living alone in Osaka typically ranges from 120,000 to 150,000 yen. This is an average estimate, and actual costs can vary depending on the area you live in and your lifestyle, but it tends to be somewhat lower than in Tokyo.

Startup Environment in Osaka

Why is Osaka Considered a "Startup-Friendly City"?

There are several reasons why Osaka is known as a city conducive to startups. Here are some key factors:

1. Robust Business Infrastructure

As a longstanding commercial center in Japan, Osaka has a wealth of business infrastructure, particularly in commerce and manufacturing. This provides an environment where businesses can easily operate and expand.

2. Active Networking and Community

Osaka has a strong culture of personal connections, which extends to business and startups. Networking and community activities are highly active, offering entrepreneurs plenty of opportunities to connect with fellow businesspeople, investors, and partners.

3. Comprehensive Support Systems

Public institutions like the Osaka prefectural and city governments and Chambers of Commerce actively provide startup support initiatives. Osaka Prefecture, in particular, offers various subsidies, grants, and support programs, fostering an environment conducive to the birth of new businesses.

4. Startup Promotion Across the Kansai Region

The entire Kansai region is expanding its startup ecosystem, making it easier for entrepreneurs based in Osaka to receive support from neighboring cities like Kyoto and Kobe.

Startup Visa in Osaka

If you obtain a Startup Visa in Osaka, the initial stay period is typically 6 months, but it can be extended for a maximum of 1 year if approved.

Application for Startup Activity Plan

In Osaka, the Osaka Innovation Hub (OIH), operated by the Osaka Business Development Agency, has established a ‘Foreign Entrepreneur Support Desk’ that accepts applications for startup activity plans under the Foreign Entrepreneurship Promotion Project.

Eligible Business Sectors in Osaka

  1. Manufacturing
  2. Industrial-related sectors
  3. Green Energy
  4. Healthcare & Life Sciences
  5. Tourism, Sports, Culture, and Urban Development

Application Process

  1. Receive support via email from the Foreign Entrepreneur Support Desk for preparing your startup activity plan.
  2. Submit the required documents to OIH.

Extension Process for the Startup Visa

  1. Report Business Progress: During the initial 6 months, you must work according to your business plan and report the progress to Osaka City.
  2. Apply for Extension: Before the initial period ends, submit an extension request with additional documents detailing the progress and future plans.
  3. Reevaluation: Osaka City will review the business’s progress and potential for future growth. If approved, an additional 6-month extension is granted.

Osaka Innovation Hub (OIH)

OIH plays a key role in promoting Osaka's business ecosystem, offering a platform for both domestic and international entrepreneurs to launch and grow their businesses.

1. Startup Support Programs

OIH offers programs that assist entrepreneurs in building business models, securing funding, and developing marketing strategies. Acceleration programs are particularly robust to foster startup growth.

2. Coworking Spaces

Coworking spaces for startups and freelancers are offered, providing a collaborative environment for networking and innovation.

3. Events and Workshops

OIH regularly hosts events and workshops related to entrepreneurship and innovation, providing opportunities to connect with business partners and investors.

4. Global Network

Connected to global innovation hubs, accelerators, and venture capitalists, OIH offers support for startups aiming to expand internationally.

5. Mentors and Advisors

Startups receive guidance from experienced mentors and business advisors, offering concrete advice to accelerate business growth.

Global Startup Events in Osaka

Hack Osaka

Hack Osaka is an international startup and innovation event hosted by Osaka City annually. The event strengthens Osaka's innovation ecosystem and supports startups in their growth, aiming to establish Osaka as a global innovation hub.

GET IN THE RING

This global startup pitch competition has a unique ‘boxing ring’ format, providing a platform for startups to present their business models and innovative technologies to a global audience and investors. The 2024 event will be held in conjunction with Hack Osaka in November.

Startup Weekend Osaka

Startup Weekend is a 54-hour hands-on event where participants create startups from scratch. Held regularly, the event is typically conducted in English and covers everything from brainstorming ideas to prototyping and final presentations.

Links

OIH STARTUP PORTAL SITE

Applications for Osaka Startup Visa

This article belongs to JETRO.

Want to know more about this city?

Explore information about startup support from many local governments on the directory page.
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Author
Sayaka Kito
Blackbox Staff Writer
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