Small and Medium Enterprise Agency

VII. Share of SMEs in the Japanese Economy

Number of Enterprises	Number of Employees

Value of Shipment in Manufacturing

Change in Start-up and Closure rates [enterprise-based]

(non-primary industries/annual average)

1. Number of Enterprises

Industries	SMEs		Large Enterprises		Total
Industries	Number of Enterprises	% of Total	Number of Enterprises	% of Total	Number of Enterprises	% of Total

Manufacturing & Others	1,498,351	99.8	3,294	0.2	1,501,645	100.0
Wholesale	255,587	99.1	2,394	0.9	257,981	100.0
Retail	1,743,848	99.8	4,000	0.2	1,747,848	100.0
Services	1,191,823	99.7	3,742	0.3	1,195,565	100.0

Total (Non-Primary Industries)	4,689,609	99.7	13,430	0.3	4,703,039	100.0

[Source] Compiled from Ministry of Public Management, Home Affairs, Posts and telecommunications, Establishment and Enterprise Census of Japan (2001)

[Note ] Number of Enterprises = number of companies (as defined under SME Basic Law) + number of self-employed

(Reference) Number of Establishments and Number of Enterprises

Industries	SMEs		Large Enterprises		Total
Industries	Number of Enterprises	% of Total	Number of Enterprises	% of Total	Number of Enterprises	% of Total

Number of Establishment	6,071,654	99.2	47,407	0.8	6,119,061	100.0
Number of Enterprises	4,689,609	99.7	13,430	0.3	4,703,039	100.0

[Source] Compiled from Ministry of Public Management, Home Affairs, Posts and telecommunications, Establishment and Enterprise Census of Japan (2001)

2. Number of Employees

Industries	SMEs		Large Enterprises		Total
Industries	Number of Enterprises	% of Total	Number of Enterprises	% of Total	Number of Enterprises	% of Total

Manufacturing & Others	13,093,499	65.6	6,858,516	34.4	19,952,015	100.0
Wholesale	2,467,928	67.8	1,170,471	32.2	3,638,399	100.0
Retail	7,677,242	74.3	2,658,078	25.7	10,335,320	100.0
Services	6,724,696	77.0	2,005,533	23.0	8,730,229	100.0

Total (Non-Primary Industries)	29,963,365	70.2	12,692,598	29.8	42,655,963	100.0

[Source] Compiled from Ministry of Public Management, Home Affairs, Posts and telecommunications, Establishment and Enterprise Census of Japan (2001)

3. Value of Shipment in Manufacturing

Scale	1995	1996	1997	1998	1999	2000	2001	2002

SMEs	157,139 (51.3%)	159,523 (51.0%)	164,025 (50.8%)	157,940 (51.6%)	150,550 (51.7%)	153,624 (51.1%)	146,818 (51.2%)	137,776 (51.1%)
Large Enterprises	148,890 (48.7%)	153,546 (49.0%)	159,047 (49.2%)	147,929 (48.4%)	140,900 (48.3%)	146,854 (48.9%)	139,849 (48.8%)	131,586 (48.9%)

Total	306,030	313,068	323,072	305,869	291,450	300,478	286,667	269,362

[Source] Ministry of Economy, Trade and Industry, Census of Manufactures

[Note ] SMEs are defined as establishments employing 4 to 299 employees and Large Enterprises as those employing 300 or more.

4. Productivity Index (Whole Industry)

Scale

1995

1996

1997

1998

1999

2000

2001

2002

Value Added
(billion yen)

SMEs

Large
Enterprises

158,715
(57.2%)

118,558
(42.8%)

147,384
(54.6%)

122,336
(45.4%)

152,907
(55.5%)

122,754
(44.5%)

153,151
(56.6%)

117,262
(43.4%)

148,034
(55.3%)

119,697
(44.7%)

153,404
(55.5%)

123,225
(44.5%)

140,357
(54.6%)

116,534
(45.4%)

138,717
(53.8%)

119,152
(46.2%)

Productivity of
Value Added
( thousand yen)

SMEs

Large
Enterprises

4,993

10,032

4,840

10,287

4,894

10,265

4,837

9,696

4,602

9,831

4,573

10,425

4,483

10,109

4,558

10,228

[Source] Ministry of Finance, Financial Statement Statistics of Corporations by Industry

[Note .1] SMEs are defined as establishments capitalization at less than 100 million yen, and Large Enterprises as those capitalized at 100 million yen or over.

[Note .2] Productivity of Value Added = Value Added / (no. of employees + no. of directors)

5. Productivity Index (Manufacturing)

Scale

1995

1996

1997

1998

1999

2000

2001

2002

Value Added
(billion yen)

SMEs

Large
Enterprises

65,113
(55.6%)

52,091
(44.4%)

65,894
(55.2%)

53,410
(44.8%)

66,745
(55.7%)

53,128
(44.3%)

64,239
(56.7%)

48,997
(43.3%)

61,631
(57.1%)

46,299
(42.9%)

62,472
(56.7%)

47,770
(43.3%)

59,608
(57.7%)

43,697
(42.3%)

55,713
(57.2%)

41,746
(42.8%)

Productivity of
Value Added
( thousand yen)

SMEs
(Large
Enterprise=100)

Large
Enterprises

8,773
(48.8%)

17,975

9,069
(48.2%)

18,826

9,335
(49.0%)

19,063

9,010
(49.8%)

18,093

9,081
(50.9%)

17,842

9,366
(49.3%)

19,009

9,321
(52.7%)

17,684

9,249
(51.0%)

18,153

[Source] Ministry of Economy, Trade and Industry, Census of Manufactures

[Note ] SMEs are defined as establishments employing 4 to 299 employees and Large Enterprises as those employing 300 or more.

6. Change in Start-up and closure rates

1) Change in start-up and closure rates [enterprise-based]
(Non-primary industries/annual average)

	’75-‘78	’78-‘81	’81-‘86	’86-‘91	’91-‘96	’96-‘99	’99-‘01

Start-up Rate	5.9%	5.9%	4.3%	3.5%	2.7%	3.6%	3.1%
Closure Rate	3.8%	3.8%	4.0%	4.0%	3.2%	5.6%	4.5%

[Source] Compiled from Ministry of Public Management, Home Affairs, Posts and telecommunications, Establishment and Enterprise Census of Japan (2001)

2) Change in start-up and closure rates [establishment-based]
(Non-primary industries/annual average)

	’75-‘78	’78-‘81	’81-‘86	’86-‘89	’89-‘91	’91-‘94	’94-‘96	96’-‘99	’99-‘01

Start-up Rate	6.2%	6.1%	4.7%	4.2%	4.1%	4.6%	3.7%	4.1%	3.8%
Closure Rate	3.4%	3.8%	4.0%	3.6%	4.7%	4.7%	3.8%	5.9%	4.2%

[Source] Compiled from Ministry of Public Management, Home Affairs, Posts and telecommunications, Establishment and Enterprise Census of Japan (2001)