In Japan, Young Face Generational Roadblocks
nytimes.com
nytimes.com
He was really seen as someone to rock the boat, and as someone who could really turn around the stodgering top-down society that is Japan. It's probably safe to say that most of the youth of the country were rooting for him, and the new economic growth that he would most likely bring to Japan.
Then he f-ed up, and got caught up in stock fraud. I know that he's still appealing the decision, but the evidence against him was pretty huge, and the backlash was rather dire.
Up until that point, all the proponents of Horie were saying "Look! This young guy is brilliant, making tons of money, and can change the way Japan operates!" When he got arrested, that changed to "Look! This young guy broke the law, was making tons of money, and pretty much guaranteed that the youth of Japan will forever be trapped beneath their senile overlords." (Ok, that last part might just be me)
sorry, it seems I'm still a little peeved about the whole thing.
Yesterday I was talking with the (rather young) CEO of a automotive-electronics startup and he was saying that Japan's industry is slowly dying because of a lack of desire to innovate. He said "In order to succeed in the Japanese market, you can't introduce something new because it'll get shot down. You need to go abroad, do your research, make demos, make it work, then bring it back to Japan and say 'Look what we're doing abroad!' ".
I hope this country does great things (because I don't have anywhere else to go), but I really worry about the future of a country that doesn't value its youth to such a degree that they lose all motivation.
Here's the thing. EVERYHING. I mean EVERYTHING in Japan is based on social connections. Not just business, but every social interaction you have with any person anywhere will in most probability be based on who you know, and what connections you have.
Which is one reason why I think it is very hard for foreigners and foreign companies to make head-way in Japan.
In my decade here, I have a small smattering of connections, but nothing as wide raging as what your average Japanese person would have. But even my small smattering has helped me secure a great deal on my house loan, get a great deal on 3 cars, get me more high-quality furniture for my house than I could ever imagine, and free food at my favorite high-class restaurant.
None of this is because I am a good, or even out-going person. It's only because I've become indebted to someone, or have someone indebted to me. (お世話になります has never been so true)
Translation, please?
For example, what happened during the Meiji area is pretty unique in world history AFAIK, and that was a gigantic change. My experience in Japan is that people are less willing to change things, but are much more willing to change once they agreed on the nature of the change (that's part of what makes Japanese company still efficient today: people are willing to sacrifice a lot for something else than their own self if they believe it worths it).
There is no question that Japan is facing huge challenges as of today - but I would not bet on Japanese society not being able to deal with it once they really have no choice. Also, the young people the article refers too are actually between 25 up to 40 years old (people entering the job market after the bubble in mid 90ies), so mathematically, old people who benefitted from the pre-bubble system will be less and less influential
What they are really, shockingly, amazingly good at, is doing things well once they do get moving.
Over here, quality matters more than anything else, and it shows everywhere -- even the 'dollar-store' (100 yen shop goods) have shockingly good quality.
I don't find that so awful. At least they look at what works abroad. That's better than changing all the time and being blind to everything outside your own borders.
On the plus side, persistent market inefficiencies are a gift from God if you're prepared to exploit them. (Where else can you find Californian purchasing power at engineering wages which would be skimpy in small town Iowa?)
(See also: Demand Media, which does the same equation except it substitutes "stay-at-home moms" for 20-something Japanese engineers.)
Most persistent market mispricings of labor should be profitably exploitable.
Plus if you're willing to be a little more adventurous and get off the beaten track, there's always some cool little hole in the wall where you can find interesting food at reasonable prices.
And the service in Japan - pretty much regardless of what price you're paying - is amazing... you have to experience it to believe it. I came home and was in culture shock for a couple of weeks whenever I went into a restaurant or retail store.
Likewise accommodation (at least the kind used by travellers) was also average to cheap if you were willing to do a little research before hand (http://travel.rakuten.co.jp/en/ was what I used mostly). However if what I was told by people living there is anything to go by, longer term accommodation can get pretty expensive.
But you can also spend as much as you want if you're looking for luxury food, hotels, ryokans, whatever.
This held pretty much true for us all the way from Tokyo to Kagoshima.
In the US, the Starbucks barista will be slower and waaaaay less formal, but she'll probably not worry if you're a penny short.
In Japan, if you are one yen short, you aren't getting the latte you've ordered, even if it's already made, because Those Are The Rules.
My personal view on the situation, is that we need to step back and look at what this system of higher education has done. And then start focusing on vocational training, in HS, apprenticeships, and on the job skill training.
Such as?
Surely there are lessons to be learned here.
Cross-reference with "An Innovator Leaving Japan"
http://news.ycombinator.com/item?id=1325704
http://synaptify.com/?p=613728
OT: Ikiru "To Life" (a 1952 film about one man and Japan's human crushing bureaucracy) is one of Kurosawa's best
Why did those companies succeed?
Furthermore, the nation was hungry, not literally, but hungry for success, so they worked extra hard. The success of post-war Japan is built on the 16-hour workdays of countless salarymen. Those peculiar post-war conditions are long gone.
I wish it wasn't, but a society based entirely on social connections that is resistant to change is a hard place for an outsider to start a company.