Economic Situation
The Japanese economy is currently on track to recovery. However, the level of recovery actually achieved varies depending on factors such as firm size, region, and industry sector, and there are even concerns that the gaps between companies and regions are widening as the recovery unfolds.

Small and medium-size enterprises (SMEs) make up 99.7 percent of all companies in Japan and employ about 70 percent of all workers. SMEs play a very important role not only in underpinning industrial vitality and local economies, but also in creating jobs. SMEs are the essential backbone of the Japanese economy. For our nation to achieve a true recovery and sustainable growth, we must increase the number of dynamic SMEs, while revitalizing these enterprises’ management and enhancing their overall capabilities.

The business scene has been changing rapidly and dramatically with the globalization of the economy, digitization and information networking, and the diversification of consumer needs. Both companies and economic organizations face challenges arising from these trends.

Challenges and Tasks of the Tokyo Chamber of Commerce and Industry
It is important to build a free and vital economy in which individual companies can fully demonstrate their unique strengths with mobility and a spirit of inquiry amidst today’s rapidly changing world. Such society should also be one in which employees exercise their abilities to the full. If we are able to achieve this, I am confident that the vitality of the Japanese economy will be increased. And without such an increase in economic vitality, policy issues will remain unresolved.
In order to create this sort of economy, we must orchestrate the strengths of 80,000 members and actively propose necessary policy measures among national and local governments. Moreover, as a comprehensive local economic organization, we need to provide tailored and detailed forms of assistance that address the business challenges faced by individual companies. This can be achieved through well-developed management support programs in close coordination with our 23 chapters.

The TCCI addresses a wide range of policy issues today. In this respect, Mr. Yamaguchi, my predecessor, has already set forth clear pathways for addressing these policy issues, and it is my basic intent to continue them. It is my hope to be able to be of your assistance to you all as the new chairman by so doing.

A Four-Point Approach of Management
The aim is for TCCI members, other individuals, and the TCCI itself to be bold in initiating constant innovation and in fully displaying individual inspiration. The term “innovation” here does not mean just innovation in terms of science and technology, but refers also to efforts directed towards review and reform of all processes, including management and social frameworks. Put briefly, I am talking about daring innovation. As leader of the TCCI, I will do everything I can to support our members’ efforts to innovate. To achieve this goal, I will lead the TCCI based on the following four concepts.

(1) Promoting Activities That Address Actual Situations
First and foremost, the TCCI will promote activities that address actual situations.

I am confident that activities implemented by each chapter that address the real situations faced my members are the basis of the TCCI and its strength. Based on this conviction, I will incorporate the ideas of our member companies in my leadership of the TCCI.

If SMEs reform their day-to-day processes of management and improve their management through constant innovation, it will lead to the revitalization of the local economy. SMEs make up most of the TCCI’s membership, so the TCCI is in a good position to assist with such innovation. To do so, I hope to get a good sense of what member companies’ day-to-day concerns are and what concepts they are using in their management. I plan to personally visit as many chapters, communities, and companies as possible to find out the actual situation at each such location.

I will listen sincerely to what business entrepreneurs really think and fully reflect their ideas in our recommendations to central and local governments as well as in the community-based activities of our 23 chapters.

(2) Responding to Diversification
Second, the TCCI will respond to diversification.

As I have already mentioned, companies are under pressure to drastically reorganize their structures in line with the diversification of values and needs of individuals in the world of the 21st century. Along with this, challenges faced by industries, local communities, and individual companies are also diversifying. The TCCI is being required to provide carefully tailored responses as well.

To continue to be a comprehensive local economic organization trusted and supported by members, the TCCI and its chapters must fully determine the needs of members, pay careful attention to the diversification and resolution of shared issues, and actively encourage “management based on individual inspiration” so that every company can fully demonstrate its unique strengths and flourish amid and alongside its local community.

In order to achieve these goals, it is crucial that the TCCI promote activities that address the actual situations, as I first mentioned. It is also critical that the TCCI enhance communication with its members as well as review and further strengthen its various ongoing management support programs. Relevant measures include consultations and human resources development support programs.

(3) Responding to Internationalization (Globalization)
Third, the TCCI will respond to internationalization (globalization).
In recent years, the world has been globalizing at an unprecedented pace, and the international movement of people, funds, goods, and services has grown more active. For this reason, even companies focused on the domestic market are greatly influenced by the world economy and must take the international situation into consideration. It is important for companies to promote management innovation and to develop and improve their technologies, products, and services in order to respond to globalization.

The TCCI will support individual companies in their efforts to go global. It will help to heighten Japan’s international presence through the provision of information from overseas and the strengthening of economic exchanges among nations. To do this, the TCCI will fully utilize the worldwide network of chambers of commerce and industry.

(4) Responding to an Information-intensive Society (Digitization and Information Networking)
Fourth, the TCCI will respond to the emergence of an information-intensive society (digitization and information networking).

The advancement of ICT has brought massive change to all business milieus and made it easy to engage in global commerce. It is no exaggeration to say that today a company will not survive if it does not respond fully to digitization and information networking, which are central trends of the current era.

Today, SMEs tend to lag behind large corporations in utilization of ICT. When SMEs effectively utilize ICT, it improves their productivity, enables them to fully demonstrate their essential dynamism and vitality, and allows them to promote innovation.

The TCCI will develop its original support programs and will strongly urge the government to craft effective responses to the unfolding trends of digitization and information networking.

Eiichi Shibusawa, our first chairman, envisioned the TCCI as an institution that would consolidate and advocate the views of commerce and industry and create ties between companies and society. Next March, the TCCI will celebrate the 130th anniversary of its founding. I will lead the Tokyo Chamber of Commerce and Industry by boldly carrying on this philosophy of our first chairman, preserving principles that should be preserved, changing things that should be changed in light of the times, and promoting “Innovation” that will give rise to new activities.