For many foreign entrepreneurs starting a business in Japan, securing funding is one of the most complex and frustrating hurdles.
Language, business culture, local customs, banking relationships―all of these can be unfamiliar and difficult to navigate.
Even if you speak Japanese fluently, applying for loans or subsidies is a completely different battlefield. Many foreigners, even with Japanese staff, spend months without results and end up feeling shut out of the system.
They often ask:
“Is Japan closed to foreign entrepreneurs?”
But here’s the truth: even Japanese startups face the same challenges.
Japan’s Funding Environment Has Long Been Difficult ― Even for Locals
In fact, many Japanese founders―especially in the early stage―struggle with the same problems. Historically, Japan has not been startup-friendly when it comes to financing.
But everything started to change from 2020.
COVID-19 Was a Turning Point for Japan’s Startup Finance Environment
In response to the COVID crisis, the Japanese government radically shifted its stance toward small businesses and startups.
Under then-Prime Minister Kishida, the government:
- Expanded zero-collateral, zero-guarantee loan programs through Japan Finance Corporation (JFC) and credit guarantee associations
- Injected massive national budgets into subsidy and grant programs to protect employment and ensure business continuity
- Created programs like the Business Restructuring Grant, Monozukuri Grant, and Sustainability Subsidy―accessible even to new or small companies
According to the Ministry of Economy’s mid-term report in 2024, these policies have led to a significant increase in successful funding among Japanese startups and SMEs.
Can Foreign Entrepreneurs Access These Programs?
Yes.
In most cases, if you have a Japan-registered entity, you are eligible to apply―even if your company is 100% foreign-owned and foreign-managed.
The key factor is not your nationality, but your business model and plan quality.
Real Cases We’ve Supported at KANAI & CO
✅ Early-stage IT startup from Silicon Valley
→ Successfully secured a startup loan + subsidy (approx. ¥7.5M)
✅ Chinese founder of an IT company
→ Despite being in the red, secured ¥15M loan from Japan Finance Corporation
✅ Israeli-led startup ecosystem initiative
→ Launched operations in Japan with a ¥48M loan from JFC
These are not theoretical cases―these are real-world, high-impact results.
And most importantly: they are achievable.
So… Which Programs Can You Actually Use? And How?
- This is where most foreign founders get stuck.
- Which subsidy applies to my business?
- Can I combine loans and grants?
- How do I write a business plan that works―in Japanese?
Even though the systems exist, the operational know-how is fragmented, vague, and rarely written down in English.
That’s where KANAI & CO steps in.
✅ We Will Be Sharing These Insights in Upcoming Posts and Newsletters
Starting soon, I will be sharing:
- Case studies (successes & failures)
- Step-by-step funding strategy
- Insider insights on Japanese subsidy and loan systems
All through LinkedIn, newsletters, and small online events for foreign founders.
📩 Want Early Access to These Resources?
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Next Post Preview
A complete roadmap of public funding options in Japan for foreign entrepreneurs.
Stay tuned.