Evaluation of Public Policy for SMEs ; Analysis of Factors Affecting for SMEs' Assistance Programs

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It is found that newly established Japanese firms (small start-ups) in-between 1997 and 1999 created 3,250 jobs within ten years. However, this employment growth was not created equally from every single firm. Only 4.8% of firms (top 25 firms) contributed for half of the total number of job creation. Similarly, these firms' total sales growth reached 350 million of yen (growth rate is 4.8%) ten years after their inception. However, only 2.9% (top 14 firms) contributed for half of the total number of sales growth. Although the detailed quantitative analysis of growth factors will be conducted for future studies, in present, it is found that the effects of government policies or support measures were not the same but various. Besides, it is likely that government policy becomes effective (or affects for firm performance) when it influenced positively for firms' entrepreneurial strategic orientation (EO). EO was shown as one of the most effective growth factors of small firms. Being moderated by EO, it is implied that public policy for small firms may be able to influence more effectively to strategic management practices and thus substantially develop firm performance.