Effects of Fostering Local Businesses and Measures for Enhancing Business Capabilities: —Based on Case Studies on Hometown Tax Donation Gift Providers

Abstract

When considering Hometown Tax Donation in the context of regional revitalization or development, some question whether it is any different from conventional subsidies or grants. For instance, a keyword search for "regional revitalization, subsidy" will result in many hits on subsidies available to municipalities; however, such subsidies and grants can be obtained as long as municipalities can deftly "compose" proposals to submit to the national government. Furthermore, there are no reviews on how subsidies are used or how regions were reinforced, and basically no cases where subsidies, once issued, are reduced or returned. Thus, securing subsidies, rather than using them effectively, becomes the end goal. Current State of Local SME PoliciesIt has therefore been pointed out that conventional SME support policies are mostly dependent on subsidies, with limited support on such matters as strategic management know-how, and do not sufficiently enhance motivation or skills of local businesses (Eshima 2006, and Kurohata 2012). Natori (2017) also argues that many This chapter is based on Hoda (2017), Hoda and Kubo (2019a, b), with some edits, reconstructions and additions.