Act for Establishment of the Small and Medium Enterprise Agency

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(Purpose of the Act)
Article 1

The purpose of this Act is to foster and develop small and medium-sized enterprises and to establish conditions sufficient to improve their management in view of the fact that sound, independent small and medium-sized enterprises make the national economy sound and develop it, prevent the concentration of economic power, and ensure fair business opportunities for those who wish to operate an enterprise.

(Establishment and Director-General)
Article 2

  1. Pursuant to the provisions of Article 3, paragraph (2) of the National Government Organization Act (Act No. 120 of 1948), the Small and Medium Enterprise Agency is established as an external bureau of the Ministry of Economy, Trade and Industry.
  2. The head of the Small and Medium Enterprise Agency shall be the Director-General of the Small and Medium Enterprise Agency.

(Task)
Article 3

The Small and Medium Enterprise Agency is tasked with accomplishing the purpose described in Article 1.

(Affairs under the jurisdiction)
Article 4

  1. The Small and Medium Enterprise Agency shall, in order to accomplish the task specified in the preceding article, take charge of the following affairs:
    1. Matters on planning and formulation of basic measures for the fostering and development of small and medium-sized enterprises
    2. Matters on improvement of management methods, advancement of technology, and other management improvements of small and medium-sized enterprises
    3. Matters on creation of new businesses for small and medium-sized enterprises
    4. Matters on optimization of transactions pertaining to small and medium-sized enterprises
    5. Matters on ensuring of opportunities of business activities for small and medium-sized enterprises
    6. Matters on stabilization of management of small and medium-sized enterprises;
    7. Matters on smooth supply of funds to small and medium enterprises
    8. Matters on diagnosis and advice on management of small and medium enterprises and training
    9. Matters on interaction or collaboration of small and medium enterprises and organization by small and medium enterprises
    10. Providing consultations concerning the management of small and medium enterprises and execution of necessary procedures or mediation pertaining to complaints or opinion offerings or to inquiries concerning the administration pertaining to small and medium enterprises
    11. Beyond what is set forth in each of the preceding items, matters on affairs not under the jurisdiction of other administrative organs with respect to small and medium enterprises
    12. Matters on international cooperation pertaining to the affairs under its jurisdiction
    13. Beyond what is set forth in each of the preceding items, affairs assigned to the Small and Medium Enterprise Agency pursuant to laws (including orders pursuant to laws)
  2. The Small and Medium Enterprise Agency may request reports, submission of materials, and other necessary cooperation from an administrative authority and may state its opinions to the administrative authority with respect to matters related to small and medium enterprises.
  3. When an administrative authority intends to establish measures as the basis for the allocation of finance or goods to small and medium enterprises or other important measures that are particularly related to small and medium enterprises, it must notify the Small and Medium Enterprise Agency to that effect.
  4. The Small and Medium Enterprise Agency may submit opinions on matters related to small and medium enterprises with respect to bills to be submitted to the Diet.
  5. When a small and medium enterprise operator is unjustly prevented from operating its business by an act of an administrative authority, or, is subjected to an unfair restraint of trade by an act of another person,or finds that an act of another person is an unfair trade practice, it may report such fact to the Small and Medium Enterprise Agency.
  6. In the case referred to in the second part of the preceding paragraph and when the Small and Medium Enterprise Agency finds it necessary, it shall transfer the case to the Fair Trade Commission with its opinions attached.
  7. The Small and Medium Enterprise Agency may investigate whether a small and medium enterprise operator is prevented from operating its business due to unfair restraint of trade or unfair trade practices of other business operators or whether a member of a small and medium-sized enterprise cooperative is a small-sized business operator and may report such facts to and request appropriate measures from the Fair Trade Commission.
  8. When the Fair Trade Commission finds that a small and medium-sized enterprise cooperative is not a cooperative that meets the requirements under each item of Article 22 of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Act No. 54 of 1947) or finds that a member of a small and medium-sized enterprise cooperative is substantially not a small-sized business operator and when it gives a notice pursuant to Article 50, paragraph (1), of the same Act, it must notify to that effect to the Small and Medium Enterprise Agency.
  9. The Small and Medium Enterprise Agency may request the cooperation from testing and research institutes with respect to equipment and technology that can contribute to the improvement of the management of small and medium enterprises.

(Small and Medium Enterprise Policymaking Council)
Article 5

  1. Among councils or similar entities established within the Ministry of Economy, Trade and Industry pursuant to the provisions provided separately in laws, those established in the Small and Medium Enterprise Agency shall be small and medium enterprise policymaking councils.
  2. Small and medium enterprise policy making councils are governed by the Small and Medium-sized Enterprise Basic Act (Act No. 154 of 1963, including orders pursuant to the Act).

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