Vitalizing Small and Medium-Size Enterprises
Small and medium-size enterprises play an important role in the Japanese economy. More than 99% of Japanese companies are small and medium-size enterprises, and employees of small and medium-size enterprise make up about 70% of the total Japanese employee population. Small and medium-size enterprises are a major customer for ORIX, and ORIX aims to support their growth and vitality by providing finance and other services to meet their management issues and needs.
In Japan, where the population is aging, many small and medium-sized enterprises are forced to go out of business because they do not have a successor, even though they are needed in the local communities and industries and their business performance is stable.
In 2018, ORIX's corporate sales division launched a specialized team to meet the business succession needs of small and medium-sized enterprises. The closure of small and medium-sized enterprises due to the absence of successors is a major social issue, and we see it as an important issue for the Corporate Business Department whose client-base is small and medium-sized enterprises.
ORIX’s business succession support business is intended to enable the target company to survive long-term. In addition to providing support by making use of the management and financial knowledge we have cultivated through our financial transactions, we also provide sales support using the Group's sales network. We acquire shares of the target company and take control of the management, but keep the target company as a management entity. We will work together with the company to develop an internal control system and develop successors while maintaining the company name and retain existing employees. When business succession issues are resolved, we respect the intentions of the executives and employees of the target company and transfer the shares to successors and others.
The business succession support business is an initiative that not only enables the target company to survive into the future, but also contributes to the development of the local economy and the creation of jobs.
Provide Software Service
More than 99% of Japanese companies are small and medium-size enterprises, and more than 80% are small businesses (companies with 20 or less employees and in the wholesale, retail and service industries, companies with 5 or less employees). In addition, the employees of small and medium-sized enterprises account for about 70% of the total Japanese employee population*. In this way, small and medium-size enterprises play an important role in the Japanese economy.
Yayoi supports small and medium-size enterprises, sole proprietors, and entrepreneurs by developing and selling various business software and providing follow-up support services. The products and services provided by Yayoi are designed so that even beginners with no work experience can use them. As a result, we have greatly improved the efficiency of our customers' accounting operations, which had been done by hand or using calculators. We also provide products and services that support back office operations such as sales management, payroll, and customer management. We also provide a wide range of business consultation services and welfare services that go beyond simple software provision and maintenance. As March 31, 2020, the number of registered users of Yayoi products has exceeded 2 million.
Yayoi does not limit itself to being a simple business software maker, but hopes to act as business concierge, responding to various concerns and issues of our customers and supporting the launch and success of our client businesses, thereby contributing to the revitalization of the Japanese economy.
* Source: small and medium-size enterprises White Paper 2020