Local Zebra companies specifically target regional problems. The central government earmarked ¥600 million in funding for pilot Zebra projects that will be carried out in twenty areas around Japan. 41 An example cited of a successful Zebra company is Hitobito, a startup based in Kunimi, Fukushima Prefecture. Founded in 2017, Hitobito has distributed fruit that does not match size and other standards to greengrocers in urban areas and has developed cosmetics using persimmon peels made during the production of dried persimmon. 42 This company is profitable and makes income for local farmers. Aligning National and Local Government and Banks Japan public, private, and philanthropic sectors are involved in a concerted drive to repopulate, reinvest in rural communities with entrepreneurs and startups. A few examples of Lost in Translation and ways they are being tackled to achieve impact are described below. METI (Ministry of Economy, Trade and Industry) has a regional revitalization program and encourages start-ups to support new economic initiatives. 43 Sayaka Tomihara, Director of Startup and New Business Promotion, describes the need to work with local governments and banks to support start-ups and the gaps in being able to build partnerships with the private sector and with startups. METI policy supports local governments and banks to help start-ups. With Japan’s decreasing population, government must provide the same service level, but the cost per person is increasing with a diminishing tax base. 44 There is a high demand for innovation in government technology, and METI and the Ministry of Education offer entrepreneurship training in partnership with local universities. Other METI efforts help local government create local procurement policies to encourage rather than hinder start-ups. 45 METI provides tax incentives for angel investors and, through J-Startup Impacts, supports pilot projects to invest in start-ups and offer technical assistance. Japan has approximately 23,000 start-ups and METI would like to encourage start-ups with global aspirations. 46 The fastest-growing businesses involve healthcare, climate tech, biotech, and robotics. METI offers support to enterprises in defining and capturing outcome goals through logic models, including capturing unintended consequences. Similarly, Takeshi Mizuguchi, professor at Takasaki City University of Economics, understands the importance of working locally. The Impact Consortium, of which he is chairman, supports nearly three hundred members, including regional banks, regional companies, and social enterprises, to work together to address local social issues. It is one of his proudest accomplishments and, he says, “it takes time” to build trust with local institutions.” 47 176
Ten Years in the Making
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