#Japan #Tokyo #Small Business #management skills #GDX Research

Overview of the Current Landscape for Small Businesses

In the wake of increasing prices and a shortage of workers, small businesses in Japan face significant challenges. The latest survey conducted by Foval GDX Research Institute highlights that approximately 80% of small business owners feel they struggle with their management capabilities. As the economic climate remains uncertain, leaders are grappling with not only immediate operational issues but also long-term strategic planning.

The 2025 Small Business Management Survey

The survey conducted by Foval GDX Research Institute, based in Shibuya, Tokyo, sheds light on the self-assessment of management skills among small business owners during the challenging economic landscape from November 11 to December 12, 2025. With over 1,570 valid responses gathered from small business leaders across the country, the report delves into their perceptions, actions taken, and the barriers they face in addressing management skill gaps.

Key Findings

1. Self-Identified Skill Gaps
Approximately 80% of respondents acknowledged challenges regarding their management capabilities. Specifically, 30.4% reported feeling very challenged, while 48.7% felt somewhat challenged, emphasizing a significant concern over their skills in leadership and decision-making amidst a fluctuating economy.

2. Effective Solutions Through External Consultation
About 80% of small business leaders incorporating external advice, such as consultations with experts and participation in seminars, reported positive effects on their operations. These findings underscore the importance of engaging with external insights and fostering dialogue beyond internal processes.

3. Barriers to Implementation
Roughly 20% of owners indicated they have not made efforts to address their management issues. The primary barrier identified was a lack of available time for these critical actions, suggesting the need for systematic changes that create more time for strategic thinking.

In-Depth Analysis of Survey Responses

The survey data revealed that the struggles small business leaders face stem from various operational pressures. Leaders are often overwhelmed by immediate business needs, such as sales, hiring, and customer service, leading to the neglect of vital management responsibilities.

In terms of strategies for overcoming these challenges, the survey found the most common actions included:

• - Regular consultations with experts (44.2%)
• - Participation in seminars and training sessions (36.6%)
• - Networking at cross-industry events (32.8%)

These approaches signify a willingness to seek knowledge and support from external sources rather than relying solely on personal expertise.

Evaluating the Effectiveness of Strategies

Among those engaging in corrective actions, a notable 80% reported effectiveness from activities such as reading relevant literature, joining seminars, and participating in networking events. This collective learning environment fosters not only individual growth but also enhances organizational management capabilities through collaborative efforts.

Addressing Barriers to Improvement

For those who have not initiated any efforts to enhance their management skills, reasons for their inactivity were explored. The predominant factor cited was lack of time (56.2%), followed by prioritization of other tasks (41.4%). This feedback outlines the necessity for businesses to adopt effective time management strategies and consider outsourcing or delegating responsibilities to alleviate pressure on leaders.

Conclusion

The findings from the Foval GDX Research survey emphasize the urgent necessity for small businesses to adapt to an ever-changing economic landscape. By leveraging external insights and allocating time and resources strategically, business leaders may cultivate their management proficiency effectively. As they navigate these challenges, creating a supportive framework remains crucial for driving the collective growth of small enterprises across Japan.

About Foval GDX Research Institute
Founded in 2022, the Foval GDX Research Institute serves as an independent research entity aimed at studying the Green Digital Transformation (GDX) of small enterprises, crucial to the Japanese economy's vitality. Our mission emphasizes the significance of adapting to contemporary challenges through thorough research and knowledge dissemination.