2023-11-21 15:56:44
Very large companies and their culture of hierarchy and presenteeism are (finally) no longer popular.
In France, the time when startup table footballs and their spirit of “disruption” were the stuff of dreams is long gone. A survey published in January 2023 indicates that only 13% of students plan to accept a job in a start-up. Some scandals and other managerial excesses have happened there. But in Japan, the excitement is just beginning. This interest is accompanied by a questioning of the still very strong culture of salaried employment, analyze the Financial Times.
The country took some time to legitimize these young companies. While the United States and then Europe embraced startup culture in the 2010s, the Japanese remained loyal to large traditional companies. The complicated economic situation for several years has made it a preferred path for young workers keen to have a predictable and stable career.
The 2020 pandemic has reshuffled the cards. Japanese companies have had to adapt to remote working, throwing away the presenteeism and sense of hierarchy so dear to them. Enough to give new ideas to their employees.
“A pressure that we choose”
Result: at the end of 2021, a third of Japanese employees leaving a large company joined a startup, compared to only 8% in 2018 according to Japan Venture Capital Association. « For many people my age, startups offer an alternative work environment. There’s always a lot of pressure, but it’s a pressure you choose » observed in the columns of Financial Times a 26-year-old young man graduated from Keio University, busy leaving his job at a large bank for a startup.
Interest is also being felt among investors. In 2022, Japanese startups recorded record fundraising, contrasting with a global drop in investments of 35%, reports Tech Crunch. Startups raised 877 billion yen, or 5.4 billion euros. In 2013, they only raised 570 million euros. The same year, fundraising in New York amounted to 2.7 billion euros.
Furthermore, the startup ecosystem is more supported by the Japanese government, which has made it a priority. On November 12, Economy Minister Yasutoshi Nishimura inaugurated an innovation campus in the heart of Palo Alto, supposed to welcome Japanese start-ups, with the idea of bringing them closer to American companies, reports Asia Tech Daily. This political will makes this economy more “mainstream” than before. Having a career in a start-up is now a legitimate path.
Low risk, big pay
Above all, the salary that one can expect to have there is much more attractive than that of large companies. According to Japan Venture Capital Association, startupers earn ¥580,000 (around 3,500 euros) more than workers at large companies. The difference was only 90,000 yen (550 euros) two years ago. Even though there is a higher probability of losing your job when joining a start-up company, the Japanese do so without taking too many risks. They know that given the very low unemployment rate (around 2.5%), they will be able to find a job very easily.
This social and economic change, however, does not quite fit into the culture of “disruption” dear to Silicon Valley (and copied in Europe). The Japanese who join a startup do not do so to shake up established companies at all costs, but more to find something that they have not yet seen elsewhere, explain the investors interviewed by the FT.
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