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If You Start Too Small, You’ll Never Get Bigger If You Start Too Small, You’ll Never Get Bigger
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The Hit to R&D and Innovation The Hit to R&D and Innovation
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Up or Out Up or Out
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Career Women—Hidden Treasure for Gazelles Career Women—Hidden Treasure for Gazelles
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Career Women Flock to Gazelles Career Women Flock to Gazelles
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8 Who Doesn’t Get to Become an Entrepreneur?
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Published:February 2024
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Abstract
One of the reasons Japan has so few entrepreneurs is that certain sections of society are de facto excluded. First, older people start fewer new growth-oriented businesses, and Japan is aging. One consequence of aging is that it takes longer for younger people to become managers, and most successful new entrepreneurs have had some managerial experience. A second factor is the dearth of early-stage finance. Unless would-be founders are already rich, they cannot invest enough to start big enough. Those firms that don’t start big enough are less likely to survive. Even if they do survive, they won’t grow as well. Third, women face even higher obstacles than men, from a lack of managerial opportunities at traditional companies to greater difficulty in getting loans from banks. In Japan, there are just two female entrepreneurs for every 10 men, the biggest gender gap among rich countries.
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