Japan’s demographic crisis and chronic labour shortfalls have turned the economic participation of women into an economic necessity. Fifteen years ago, just 54 percent of U.S. women 15-64 were in the workforce. This year, their participation rate has risen to over 77%, above the OECD average since the early 2010s. While Japan has made significant strides in increasing female labour market participation, challenges remain, particularly concerning wage disparity and representation in leadership roles.
Yumiko Murakami, co-founder of MPower Partners, proudly noted the advances made in bringing women into the workforce. As Japan’s first female-led venture capital firm, Rika has experienced this groundbreaking change firsthand. She was equally insistent in her condemnation of the things that still stand in the way of real equality. Yet, despite improving economic conditions, a new 2024 federal survey uncovers a staggering statistic. In fact, women in Japan earn, on average, only 70 to 80% of men’s pay. This wage gap remains in place even as more women join the labor force at unprecedented rates.
So when the Japanese government set its targets for 2015 high, they really went big. Specifically, they aimed for women to hold 30% of decision-making positions in every field by 2020. Unfortunately, this ambitious goal was quietly delayed by a decade’s worth of time at the end of that year. Women currently only make up 11.1% of all leaders in private sector companies. This would leave Japan ranked last among the 38 member countries of the Organisation for Economic Co-operation and Development (OECD) in terms of the share of women in such leadership positions.
This year, Japan ranked 118th out of 148 countries on the World Economic Forum’s Gender Gap Index, underscoring the country’s struggles with gender inequality. According to a survey awarded to female entrepreneurs, over half have experienced sexual harassment in the past twelve months.
Moeko Suzuki, who co-founded Startup Lady nearly a decade ago. She noticed an important lack of support for aspiring and early-stage female entrepreneurs of all nationalities in Japan. Her and her partner’s mission is to build a performance platform for women to succeed. In particular, they work to create a culture that has traditionally been steeped in patriarchal viewpoints.
Murakami is adamant that we need to see the development of a critical mass of female entrepreneurs. This amendment is a significant step toward changing the venture capital environment in Japan. She warned that without strong representation, women end up shut out of critical networks that bring funding and support.
“And therefore, because there’s no critical mass, they are really not part of the core of this small start-up village. And therefore, in my opinion we need to create critical mass.” – Yumiko Murakami
As she did, she shed light on the major disadvantages that women founders face raising capital relative to male founders.
“But they may not get the same level of access to capital in the same way as male founders do, which creates opportunities for people like us [as investors].” – Yumiko Murakami
The venture capital industry remains largely insular. Insiders have the benefit of unfettered access to valuable information and connections, Murakami noted. By contrast, outsiders often find it impossible to break into these networks.
“The venture capital industry is very closed in a way. If you’re in, if you’re an insider, then it’s great because you are connected with everybody and the information travels really quickly.” – Yumiko Murakami
“But, if you are not, then it’s really hard – you just don’t get a lot of information. The sheer number of female founders is just tiny.” – Yumiko Murakami
The University of Tokyo, among other institutions, is taking a direct approach to address gender representation challenges. They are offering matching subsidies to departments that hire women as faculty to increase their ranks. Together, these initiatives provide an inclusive space for female academics to flourish and in turn, dazzlingly enrich the culture of the academy.
Sanae Takaichi’s recent election as a female Prime Minister should she ga… Others worry that her conservative policies will fail to address the gender disparities that already exist.
MPower Partners is collaborating with one of Tokyo’s local governments. Together, they will host a public lecture and educational workshops that give female entrepreneurs the tools to succeed. These sessions serve as a deep-dive into critical areas including fundraising and closing the deal. Their inspiring one-on-one mentoring and matchmaking events help cultivate dynamic women in our growing business community.
Women in leadership and entrepreneurship will be absolutely central to this process. Our recent progress has brought more women into the labor force. Yet, systemic issues remain that continue to prevent full equality and representation.