https://www.onebloomcorp.com/column/vol2-why-should-more-investors-and-entrepreneurs-also-aim-for-the-japanese-market-at-this-time

In Part 1 of this Vol2 attached, early stage companies such as startups and relevant markets were rather the target viewpoints, but here in Part 2, I would like to start mentioning about related valuable opportunities and possibilities from a different perspective. I think it is more for overseas (outside Japan) investors, business companies, business investment companies, individuals with abundant management practical experiences, etc from the perspective of Japan and Japanese companies, which are entering in era of major “Corporate Closures” and “Business Successions”, It must be immense potential locally, nationally, and globally. 

Currently, Japan Corporate is entering an era of major closure, where it is said that about 1 million small and medium-sized enterprises will be closed due to the aging of business owners, and it is one of the major economic and social issues facing Japan. Around this next 10 years are said to be the peak. By the way, out of the total number of 4.1 million Japanese companies, those classified as SMEs (the criteria for classification vary depending on the type of industry. For example, SMEs in businesses classified as "manufacturing and others" have paid capital, the amount of investment as 300 million yen or less, or the number of full time employees as 300 or less, etc.) are about 3.8 million companies, accounting for about 90% or more, and it is certain that the number of employees, economic scale etc accounts for about 60 to 70% of the total number. In addition, the number of companies that become listed companies is less than 0.1% as the whole, and the ratio is less than that if it becomes a Japanese super-major company that the general mass public people are familiar with. Many of the 3.8 million SMEs are now facing business succession issues and successor issues, so I think it will be easy to imagine the potential for those who can imagine the challenges and opportunities and the coming impact size as a whole.

As for the scale of each company, most companies have annual sales of 10 billion yen or less. And the many companies are classified as small and medium-sized in Japan, but in emerging countries and developing countries overseas, they would be categolized as medium-sized or above. There are a lot of companies and organizations with scale and resources that can be classified as large companies in different market worldwide, and it seems that they are in danger of going out of business.

Therefore, the needs for the opportunity to take over the company are the highest right now, but are most of the companies offered for sale as worthless or have lost their value? That is not the case at all. According to an official survey, more than half of the SMEs are in the black and unfortunately becoming out of business. As a matter of the fact, some companies have lost their value and have reached the end of their lives, but nowadays, even if they are in the black and have still value, there are actually quite a lot of companies that are forced to close their businesses due to various reasons such as aging. Whether to erase the technology, know-how cultivated over many years, resources such as people, goods, money, tangible / intangible assets, and capital etc. Or whether to have an appropriate company or individual taking over the companies by M&A etc to sustain the economic and social value and maximize its value by further synergies and complement growth. Now is somehow crossroad time between that.

But we don't want to fuel negative campaigns, saying it's just a challenge. The point is what kind of opportunities are created and will be created based on this situation and environment. If you are an entrepreneur, a businessman, an investor, a business owner etc, it is a thought that you should have on a daily basis. we are looking at opportunities that have been created based on this issue, the era of major closures, and the current situation of Japanese SMEs that have entered the era of large business succession. Actually, it's a big chance depending on how you look at it.

The people and companies that are particularly likely to seize this opportunity are those who have comprehensively, broadly, deeply and firmly experienced corporate management, business/operational management, and who practically know way of winning management at the overall level of practical works in the corporate business and operational fields. By the way, people who are learning only at desk are not good enough at all(like superficial MBA holder, Consultant etc). Obviously, companies cannot win the competition with their business model alone. The business is a full-scale full-range battle like planning and development ability, design ability, production management ability, quality control ability, capital financial ability, fund raising ability, marketing sales ability, human resources recruitment ability, organizational ability, branding ability, purchasing ability, commercial transaction ability, accounting, logistics, law, trading, global business etc etc… You must be able to manage by making full use of all the management elements with great team.

Under such circumstances, such human resources and companies that have surplus ability are currently in Japan, and started such as M&A intermediary companies, business investment management companies, individual M&A, business models such as Search Funds etc that target such small and medium-sized enterprises. It is becoming more and more prominent to do this, and little by little, there is a trend that can turn this crisis into an opportunity, but we are taking this precious opportunity to a company outside Japan (we would like to convey this to professional experienced individuals and companies who have a wealth of experience in management and business investment (investment funds, business investment and management companies etc).

Japanese companies are sometimes known globally as some of the outstanding super-large companies and part of their group, but as mentioned above and on the other hand, a tremendous number of mid-sized companies are existing, no matter whether they support such large companies or not. And, their small and medium-large sized companies are very competitive in local, national, and global, and their each technology, know-how, people, information/data, and capital etc that have the potential to bring out more abilities by leveraging their management well. It is not uncommon for a company to have its roots for more than hundreds of years. However, there are significant proportion of the companies that have not been able to grasp or maximize the true value of their resources well enough. Why? One of the reasons is that the old owner's mind is ingrained too much, so that their management is not productive, efficient and effective. Also, in the whole percentage, most of these companies understand themselves only from a local and national market perspective, but only very little from a global perspective.

Regarding the maximum utilization of in-house technology and know-how, the technology cultivated over past many years in-house can be sometimes a great treasure that is still comparable to advanced technology. In addition, even if old technologies and know-how cannot be expected to grow in the Japanese local and national market, they may be the technologies and know-how that will be required more in the emerging countries outside of Japan, which are still in the early stages of economic growth when all basic industries are expected to grow significantly not only short but mid-long term.

It should be possible to develop new business models from in-house technology by digging deeper and wider or way of thinking from a new perspective, but such new businesses can’t be found in their closed spaces or communities within the company or in related close industries where they are daily familiar with. Such cases that have not been transformed well(innovation) are occurring everywhere inside many Japanese companies.

As mentioned above, the increase of M&A by Japanese people and Japanese companies, their mediation, management etc to companies that have taken over such businesses itself is a positive movement for the local economy and society, and we have no objection to that, and we think it will continue to progress in the future, year by year.

But on the other hand, one of the business opportunities we are paying attention to is for the companies outside Japan (foreign investment funds, foreign business investment and management companies, etc.) and professional individuals with abundant management and business investment experiences. It must be a flow in which foreign professional layers work on this challenge and opportunity by activating mutual interactions, synergies, and complementary relationships not only in local/national but global viewpoint and strategies.

For example, for local established business companies in emerging countries such as growing Asia, Africa, and Middle East etc, the technologies, know-how, and resources that such Japanese companies have cultivated over many years can be incorporated into their group, and mutual strategic synergies and complementary relationships can be achieved for both side. There are quite large number of managers who want to deepen the growth of the entire group in their own emeging growth markets and local economies by working so. Moreover, it will become an overwhelming strength and differentiation that other local companies do not have and can’t easily have in short term with less investment cost. In order for them to invest in each business from scratch and start each business and to cultivate each resource and assets like possessed by such Japanese companies, it is difficult to overcome the most difficult initial stage of business start-up in each business. However, it will take decades to reach a stable period, and they will be forced to invest a huge amount of time and capital.

For example, in the manufacturing industries, they usually gave up on starting from scratch and until the business will be reached a stable period, and the structure that heavily relies on imports of finished manufactured products from overseas has increased, and such structures are pretty usual many in emerging and developing countries. In many countries, there are cases where various manufacturing industries with a wide range of vertical and horizontal fields of local supply chain ecosystem do not grow well, which should create employment. Various Japanese manufacturing companies(small, mid-large) should be the treasures on a global level, but they will be closed down without taking advantage of that opportunity, and will be absorbed by companies that are only looking at the Japanese domestic(local,national) market. Looking at the market, it should be a considerable loss to the economy and society locally, nationally, and globally, such as being cut off, shrinking, and disappearing from the perspective of old technology and know-how.

History tells us that manufacturing economy and industries doesn't grow in every country. For countries that do not have the soil, properties, mentality, heart etc to grow in the middle, it will be necessary to learn from and work together with countries and people who are good at manufacturing and doing so. Implementing sound economic liquidity, replacement and renewal at the crossborder global level can lead to win-win economical and social mechanism for both developed and emerging companies and economies.

・なぜ今、イスラエル企業 × 日系企業、なのか

イスラエルは世界有数のスタートアップ大国。
人口850万人ほどの小さな国ながら、毎年1400社のスタートアップが誕生し、現在は約6000社のスタートアップが存在しているといいます。
あのアップル、グーグル、マイクロソフトなどといった世界的企業も、同国企業を積極的に買収することで、研究開発や生産の拠点をイスラエルに移しています。
日本ではあまり知られていないとはいえ、日本においても業界人にはすでに沢山の関連情報（日本語含む）が様々なルートで届けられ、ネット上にも情報は拡散しており、改めて述べる必要もないですが、イスラエル企業（特にテクノロジー系スタートアップ企業）と日系企業の連携、協業などは昔より長年注目されてきており、大企業を中心に数々の実績も積み上がってきていますし、現在でも日々様々な新しい動きがあるような状況です。

しかし、まだまだその実際の持つポテンシャル、潜在能力からいっても、イスラエル企業×日系企業の連携や協業、というのはグローバルに見て、まだまだ不足しているのが実態です。もっと日本企業と連携や協業したいイスラエル企業（新規的、追加的）、というのは相当数存在していますし、実際イスラエル企業と接点を持ちたい、連携や協業を模索したい、と考える日系企業（大手だけでなく、中堅規模の企業など含む）が多いというのも見受けられます。つまりそこには、見えにくいギャップが存在しています。超大手企業の巨大事業投資案件などがたまにマスメディアなどで取り上げられることで、すでに大部分の可能性ある連携や協業が進んでいるんだな、という錯覚が起きがちですが、実態はまだまだです。

では、なぜ今、そしてこれからより一層イスラエル企業×日系企業、の連携や協業がナショナルにもグローバルにも求められると思うのか。なぜその意義を感じるのか。我々なりに、シナジーと補完関係、という視点で以下の何点かの要素、を取り上げています。

1. 精神、メンタリティー、意識
イスラエル、イスラエル企業には、「普通ではできないことを敢然と行なう勇気」といった肯定的な意味をもつ、フツパ精神、というものが根底に存在します。困難に決然と立ち向かい、何事も達成可能とみなす楽観主義的なパワーをもつイスラエル人たちの力の源となっているのです。過酷な外交関係、軍隊での兵役経験なども相互作用しているはずです。実際イスラエル系の実業家、起業家のグローバルにおける活躍ぶりには目を見張るものがあります。
一方、日本企業は長年の栄光の後、プクプクと丸く大きく太った多くの企業群が古い伝統や常識、しがらみ、制度などに代表される日本の会社員（サラリーマン文化）を支えてきた物事、に拘りすぎる精神、メンタリティー、意識が未だに色濃くへばりついている状態です。普通ではできないことを敢然と行なう勇気やチャレンジする精神、などは急速にしぼんでしまい、現在なんとか盛り返そうと、必死になる企業がようやく出てきているような状況です。しかし、急速に変化する、そしてあらゆる物事に対しより深い広い洞察、思考、知識、知見がグローバルに求められてくる現代そしてこれからにおいて、その精神、メンタリティー、意識では生き残れず、内部だけで改革などすることも容易ではないのが現状です。
 
2. 創造性、新規性、実行性、主体性、独自性、持続性（サステナビリティー）
上記全てが現代、そしてこれからの時代により求められてくる力です。
そして、現代ではそれらが不足している企業は、何らかの方法でそれら弱みを埋めていく必要性が出てきています。
何か新しい取り組みを行う、課題を新しいアプローチで改善する、解決する、などのイノベーションの創出には、技術や事業モデルのかけ合わせ（内外）が不可欠です。
斬新な技術やアイデア、そしてもっとも重要なスピード感など、を持ったスタートアップとのWinWinでのシナジーの創出、補完関係を築くことで、より密度濃く、より早く、実行に移せる体制を戦略的に築けます。
また、自社内技術・ノウハウの最大活用、について。自社内で長年にわたって培ってきた技術が、実はいまだに先端技術に引けを取らない大きな宝であることがよくあります。深掘りをしたり、新たな視点での発想などにより実は自社内技術から新たな事業モデルの展開が可能なはずが、自社内や関連業界におけるクローズドな空間、コミュニティーでそれらが見つけられない、事業化できていない事例が、多くの日系企業の内部で起きています。
一方である程度育ったものをさらに育成していく、持続的に運営していく、といった側面には日系企業には経験上チームプレーなどによる得意性も見られます。これはイスラエルの企業などが取り入れるべき、学ぶべき不可欠な要素ともいえます。
 
3. グローバル戦略、市場性
イスラエルは小国です。故にイスラエルの内需は小さく限られるため、大半のイスラエルテクノロジー企業は、業を起こしたDay1からグローバル市場を目指した戦略、事業モデルを描き、実行していきます。故に、彼らはグローバルに見てもトップクラスに巨大且つ先進的な内需を持つ、巨大日本市場、日系企業との連携や協業を強く求めています。
日系企業の多くはモノを生産していること、そして日本全国及びグローバルに顧客ベースを持っており、それが大きな強みになります。特にイスラエルは自国のマーケットが小さいだけでなく、製造業のベースもありません。日本及びグローバルにマーケットを持っていて生産しているという事実はイスラエル企業にとって大きな魅力になっています。
日系企業にとっても、イスラエル企業との連携や協業をトリガーにして、同社のより一層のグローバル化、グローバルレベルでの新規事業創出、改善などを進められる機会ともなりえます。

その他、日系企業からした時の欧米系スタートアップ企業との相性の難しさ（そのスピード感、優先順位、競合性等など）。連携先として日系スタートアップ企業を探索している中で感じる、その母数の限界点（多くの領域で検討対象が限られる）、なども要素としてあげられます。

・その課題は何なのか

イスラエル企業×日系企業、の連携や協業を模索、追求、となると、日系企業側は様々なアプローチを取っています。例えば、駐在員を置くこと、VCへのLP出資、地場のアクセレレーターとの連携、Fly in/outでの視察を繰り返す、などなど。
しかし、イスラエル系問わずですが、テクノロジー系スタートアップとの連携や協業は、具体性や戦略性の無い、少し足を踏み入れての覗き見程度では、誰も本気で相手にはしてくれません。コアなコミュニティーにも入れません。
ある種希少価値があるので、有望であればある程売り手市場でもあります。当然の原理です。彼らも生きるか死ぬかの世界でビジネスをしています。
しかも上記のアプローチの殆どでは、スピードをあげて現地のスタートアップとの戦略的な関係を実現性高く構築するには、かなり難易度が高い、ということです。よっぽど優秀で適材人材が社内にいるようなグローバル日系企業であれば、可能性はありますが。
 
一例として、実際イスラエル企業との戦略的な連携や協業に成功されている日系のとある自動車関連製品メーカーでも、イスラエルも含めスタートアップは地元の関係者等との戦略的な連携、協業で見つけ、直接投資につなげることが殆ど、だそうです。
また、同社でも、社長が先頭に立って推進し、事業部側も新規事業に対しては強力に支援する。投資判断においても新規事業は未来への出資ということで、長期的な視点で判断してもらっているとのこと。
VCと一緒に協業を模索する場合など、どうしてもVCは素早くエグジットを進めて利益を上げることが目的となることが多いので、リスクとして競合他社に買収されることなども懸念されます。もちろん、自由度も低いですし、それなりのコストを強いられます。またそのVCやアクセレレーターコミュニティーに中々入れない、入りにくい、という実態もあります。

また上記を実現する上で関連する事業開発（Business Development、ビジネスデベロプメント）の実務面に関し、今までの社内事業の拡大もしくは新規事業両方のケースにおいて、イスラエル企業のような海外企業との提携や連携などは日系企業とのそれ、とは戦略面、実行面など勝手が違ってきます。求められる力、情報、知見、経験、技術/スキル、ノウハウ、リソースなどの深さ、広さが変わってきます。その点を理解せず、単に情報収集のみを表面的に繰り返していても、何の結果も得られることはないのとそれに加えそのプロセスで得られることも限られるのが実態です。
企業の規模感に関係なく、それらを自社内のみのリソースで量と質で満たすのはなかなか難しく、大企業含め多くの日本企業が課題として抱えており、今後より一層自社内の独占独自的思考ではなく、外部も含めたオープンでフェアなシェアリング連携思考が求められてきている状況です。