Just Select from a Catalog! Unprecedented Subsidies to Stimulate SME Vitality

An explanatory article on the "Labor-saving Investment Subsidy" by Momona Kanemitsu of the Technology and Management Innovation Office, SME Support Division, Small and Medium Enterprise Agency. The Small and Medium Enterprise Agency has a mission to support approximately 3.3 million SMEs that comprise 99.7% of Japan's business entities, with the Technology and Management Innovation Office specifically responsible for designing various subsidies to promote innovation among SMEs. The Labor-saving Investment Subsidy, launched in fiscal 2023, supports investments effective in resolving labor shortages, supporting the introduction of cash registers, ticket machines, automatic replenishment robots, and similar equipment. A distinctive feature is the adoption of a "catalog order system," where businesses can easily apply by simply selecting desired products from a catalog instead of creating application documents—an unprecedented mechanism. The "General Type" can also be used for equipment introduction and system construction tailored to individual sites and business content. Since there was no precedent in system design, emphasis was placed on continuous improvement based on field feedback, implementing dozens of system revisions over the past year. These include shortening the reporting period from 5 to 3 years, changing to a continuous acceptance system, and relaxing catalog listing requirements to reduce user burden. Ms. Kanemitsu visits local chambers of commerce and commerce and industry associations to directly confirm field reception and continues the work of extracting and reflecting emerging opinions for improvement. As a memorable field experience, she introduces an episode where a restaurant owner in the Tohoku region was able to utilize subsidies with support from the local chamber of commerce, emphasizing the importance of staff visiting sites to provide direct explanations. For SMEs, the concept of solving labor shortages through investment has not yet penetrated, and she hopes they understand that there are areas where automation and efficiency improvements can make things better. While feeling the responsibility and excitement of being able to change Japan's future through policy, she finds great appeal in being able to change the world by reflecting field voices in policy.