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Downtown Sendai
Downtown Sendai - ©Caveman2 [Public domain]

Sendai for Startups

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Status

ongoing
Icons use case study city info

City

Sendai

Icons use case study main actors

Main actors

City Government, Private Sector

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Project area

Whole City/Administrative Region

Icons use case study duration

Duration

Ongoing since 2012

Supporting entrepreneurs through social innovation.

Sendai City government recognised that a new strategy for economic growth was required to ensure the sustainable development of the regional economy. A special zone for social innovation and a social innovation network hub have been created with the aim to identify and support social entrepreneurs. A Startup Visa for foreign entrepreneurs for the purpose of strengthening the international competitiveness of startup businesses and expanding employment opportunities has been implemented. Additionally, an entrepreneur support centre “Assista“ has been established and provides support for all small businesses and focuses on soft support such as individual consultation rather than hard support such as subsidies and office rentals.

For further information about the case study, click here.

Sustainable Development Goals

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Make cities and human settlements inclusive, safe, resilient and sustainable
City
Sendai, Japan
Size and population development
The 2015 census recorded the population of Sendai at 1,082,159. The population has increased each census period since 1995 when it was 971,297. The city covers a total area of 786.30 km2 with a population density of 1,392 people per km2.
Population composition
The 2015 census data shows that the population comprises 51.3% females and 48.7% males. 65% of Sendai residents are aged between 15-64, 22.6% are aged 65 or over and 12.4% of residents are children aged 0-14 with 13,000 foreign born residents living in the city.
Main functions
Sendai (officially Sendai City) is the capital city of Miyagi prefecture, the largest city in the Tōhoku Region. The city is situated inland of the western Pacific Ocean, the central districts lying between the Nanakita and Hirose rivers. In 2011, a 9.0 magnitude underwater earthquake occurred offshore from Sendai, resulting in a devastating tsunami that swept through low-lying areas of the city and penetrated several miles inland in some places.
Main industries / business
Sendai is the centre of the Tōhoku region's economy and is the base of the region's logistics and transportation. The city's economy heavily relies upon retail and services – the two industries provide approximately two thirds of the employment available. Construction, tourism and education also play an important role in the local economy.
Sources for city budget
The City of Sendai draws its budget for public expenditure largely from property tax, fees, operating revenues, other taxes and subsides from the Miyagi Prefectural Government and National Government of Japan.
Political structure
Miyagi Prefecture is under the administration of an elected Governor and prefectural headquarters are located in Sendai City. Sendai is a designated city of Japan (a city that has a population greater than 500,000) and has the same jurisdiction as prefectures in some areas.
Administrative structure
Sendai City is divided into five wards and is administered by a directly elected Mayor and the Sendai City Assembly. Assembly members are elected from the city’s five wards. The number of Assembly members allocated to each ward is based on population. The City Assembly elects and Assembly Chairperson and Vice Chairperson. Sendai has two vice mayors who are not elected by the citizens
Website
http://www.city.sendai.jp

As part of the reconstruction efforts after the 2011 Great East Japan Earthquake, the city sought to designate a social innovation zone to increase measures for supporting business startups with a special focus on the participation of women and foreign nationals.

Project Aims

  1. Expand the range of business startups
  2. Increase the growth rate of entrepreneurs with a special focus on women
  3. Contribute to the development of entrepreneurs
  4. Attract foreign nationals to launch startups in Sendai

The Startup Visa is a programme to encourage foreign nationals to engage in business startup activities. The eligibility requirements for “Business Manager” status of residence (required for foreign nationals to launch a business in Japan) are relaxed for those who plan to engage in startup businesses in Sendai City. At the time of making an application to the immigration bureau, the applicant must employ at least two full-time staff or have at least five million yen as business capital, in addition to establishing a business office.

However, a six-month “Business Manager” status of residence may be granted if the requirements are not met, in the case where the applicant completes a Plan for Business Startup Activities to Sendai City government.  Sendai City then confirms that the applicant is likely to fulfil the requirements, and the immigration bureau assesses the applicant on the basis of such confirmation.

The Startup Visa system is promoted by providing administrative scriveners and translators to foreign nationals who plan to launch a business in Sendai City.

Assista (Sendai City Entrepreneur Support Centre)

In order to improve the incentives for business startups and increase the continuation rate thereafter, the centre provides individual consultation with experienced advisors and various seminars on the knowledge necessary for business startups and hosts events to make connections between entrepreneurs. The centre has improved support for business startups launched by women by providing female counsellors and a childcare service.

A program is carried out to strengthen individuals who will contribute to society, to clarify the path to the goal, and to enhance the prospect to reach the goal under the support of mentors. An event is held to share information on how social entrepreneurs, both domestic and international got started and what kind of challenges they have faced and how they have been resolved.

Development of fast-growing venture/core entrepreneurs via the Growth Accelerator program

This project enlists entrepreneurs who are willing to grow, provides support for business growth such as lectures on business creation and individual consultation with senior business operators, business startup support specialists and investors, and hosts an achievement presentation session with the participation of investors, major companies and the press.

The first Growth acceleration program (covering Sendai City and all the prefectures in the Tohoku region) was implemented for the purpose of giving a boost to business startup activities and the foundation of SMEs. This aims to expand business, raise funds, and create jobs.

The lead agency for the project is the Economic Affairs Bureau, Industrial Policy Department, Industry Promotion Section of Sendai City.

The following are the results of each initiative:

Sendai City Entrepreneur Support Centre Assista

- Number of new businesses: 113 from April 2016 to March 2017 and 115 from April 2017 to March 2018.

Development of fast-growing venture/core entrepreneurs

- Number of developed teams in 2017: 15 teams

- Amount of funds raised: Approximately 123.5 million yen (as of 31 October 2018)

- Number of developed teams in 2018: 6 teams

Development/support of social entrepreneurship

- Number of developed teams in 2017: 12 teams

- 377 participants in 11 social entrepreneurship events

- Number of developed teams in 2018: 12 teams

Promotion of attraction of foreign human resources for business startups:

- Number of applications for Startup Visa in 2017: 2

The following challenges have been identified:

  • Attracting foreign business people working in Tokyo to the region.
  • International promotion of the project

It is important to revitalise activities related to business startups and create businesses that maintain both profitability and philanthropy while resolving social and regional challenges.

Categories

East Asia Economic development Employment Education and training

External links / documents

Link

Startup Visa (English) ›

Link

Website: Sendai Start-ups ›

Link

Facebook: Sendai Start-ups ›

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Council of Local Authorities for International Relations (CLAIR)
Tokyo, Japan

Council of Local Authorities for International Relations (CLAIR)

Institution

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Downtown Sendai