Japanese Civil Society Organizations Aid Refugees In Establishing Businesses, Despite Opposition From The Government

Japan is well-known for its skepticism and attitude towards immigration. While the doors have been slowly opened for professionals but the Japanese government has been reluctant to take in low-skilled workers from abroad (except for temporary work permits – and has been extremely unwelcome to refugees.

Even 2015’s so-called refugee crisis gelorawagyu.com didn’t change Japan’s closed-door policy. While countries like those in the United States, Canada and Venezuela have taken on many thousands of asylum applicants, Japan has announced it will accept only 150 Syrian “students” and their families within five years. Although this is a significant move for Japan however, the number of refugees is way too low.

Discordant Attitudes

The gap between Japan’s passive approach towards refugees and ensuring adequate support and its active commitment to refugees outside of its borders is frequently criticized by NGO and journalists, media as well as researchers..

Japan is among the biggest contributors of funds to the UN refugee agency and the Prime Minister Shinzo Abe unveiled a series of initiatives which included the grant of US$2.8 billion for refugees and host communities at the Leaders’ Summit in New York in September 2016. Despite this huge financial commitment, Japan’s refugee acceptance rate is incredibly low (less than 1percent of all application numbers in).

In the case of 3,898 asylum applications accepted in Japan in the year 2000 just 27 were accepted as refugees. This number included asylum seekers who challenged the decision of the government to not admit their claims during prior years. Add in the 79 that were given special rights to remain in Japan due to the basis of humanitarian reasons the total is just a little over 100.

Refugees can work with no restrictions. But asylum seekers can’t work if they have sought asylum within Japan legally.

Asylum seekers who apply following the expiration of their visas are expired are sent to an immigration detention center. A few may be released in a provisional manner or permitted to stay in the outside of the centre. However, they remain ineligible be employed.

Civil Society Comes In

Given the institution-related restrictions facing asylum applicants, Japanese civil society and companies are progressively taking steps to help refugees gain acceptance, and assist those who are seeking to establish their own businesses.

The nonprofit organization in Tokyo, Entrepreneurship Support Program for Refugee Empowerment (ESPRE) is the only public-interest foundation that government has granted permission to micro-finance refugees. Through a partnership in collaboration with Japan Association for Refugees and Social Venture Partners Tokyo, ESPRE loans up to one million yen (about $8800 USD) to refugees and offers additional assistance in the form of advice on business.

The kinds of ventures ESPRE has funded include food service to trading enterprises. For example the project of one Burmese ex-university lecturer who applied for asylum Japan and stayed in Japan for more than 20 years, started an Myanmar establishment located in Tokyo with the support of ESPRE in 2012.

And Vietnamese refugee Minami Masakazu emigrated from his home at the age of a teenager and was also helped to establish a renowned Vietnamese eatery within the capital city. ESPRE has also assisted to assist a Pakistani businessman who owns an enterprise that trades used Japanese automobiles. The company started with Mozambican buyers. Mozambican markets and has since been expanded into other markets.

Companies also seem to appreciate the idea of helping refugees with the entrepreneurship. Uber Japan, for instance began an initiative in 2014 asking their customers to make donations the charity ESPRE as well as an unnamed tax accountant is a pro bono service for refugees, according to the director of ESPRE, Masaru Yoshiyama.

Many Benefits

The academics and professionals working on behalf of refugees have highlighted the positive impacts of entrepreneurship for the host society and the refugees.

In the beginning it helps refugees. It’s not difficult for refugees to feel helpless and less confident in the event that they are dependent on government aid. They can restore their independence and confidence by establishing an enterprise, making money and participating in the host community as a volunteer.

Organizations such as ESPRE do not only assist them by funding projects, as well as reducing the barrier to speaking, that is why Japan is known for. To help with this, ESPRE holds English-language orientation sessions in which business experts and accountants provide guidance on the best ways to manage a company within the country.

It is also widely accepted that refugees can help boost their local economies by providing employment opportunities. For instance, the Myanmar restaurateur in Tokyo is one example. The owner of a restaurant in Tokyo employs students and refugees. Although this hasn’t yet been seen in Japan the other countries, refugees who own businesses frequently employ locals..

In addition, refugees’ involvement in self-generating economic activities could alter the perception of the public of them as considered to be a ” societal burden”. This reduces the negative perception of the public towards refugees.

Remaining Challenges

However, despite these advantages there are still a few obstacles remain in the way of facilitating refugee-led entrepreneurship in Japan.

The first issue is the lack of resources. In contrast to countries where the amount of refugees is high and the infrastructure for supporting refugees (or minority entrepreneurs in general) has been put in place up, initiatives in Japan are still in their early stages, and the availability of personnel and financial capacity are not as strong.

ESPRE Director Yoshiyama has said to me this had impeded the establishment of a better-organized aid process that ranges from the evaluation of business plans to providing support for projects that have been implemented.

Inflexibility in the institution is another issue. Asylum seekers are only allowed to operate under strict guidelines. The rules are formulated in an assumption that asylum seekers are an employee instead of being an employer or self-employed. This can lead to confusion and adds to their administrative burden, as officials are not able to give permission to start the business of their choice.

The biggest issue that is a major issue in Japan particularly is the lack of awareness for refugees as well as undocumented migrants. While the recent refugee crisis has dramatically increased public awareness however, the issue is thought of in Japan as something that’s happening in the world. This doesn’t do much to make things easier for refugees who are entrepreneurs.

The last thing to mention is that it is important to remember that refugee entrepreneurship isn’t an all-purpose solution. A lot of refugees are minors or vulnerable individuals, and may not be able in a business. Entrepreneurship for refugees should be seen as an ideal – option for helping refugees become autonomous and fully integrated into the country they are staying in.

A Greater Number of Women Working In Venture Capital Does Not Provide More Funds For Female-Led Firms, New Research Suggests That And Here’s The Reason

Venture capital plays a significant role in helping startups start. It also has a pronounced gender gap.

More than 4 out of 5 partners in U.S.-based venture capital companies are male, surveys and research indicate. It is also worth noting that VC firms heavily direct their money to men-dominated businesses. In 2023 just 1 of 4 the VC funds were allotted to women-led businesses, according to Crunchbase information.

Women’s rights advocates have long demanded companies to include more female venture capitalists in their team. The concept of having more females taking investments will result in greater funding for female-led companies.

As an assistant professor of entrepreneurial thinking I was wondering if the evidence supported this notion. So, my co-authors and myself examined funding decisions of more than 150 large and medium-sized U.S.-based VC firms over eight years.

When Women Don’t Support Women

What we discovered shocked us We found that firms whose group decision-making committees had women who were senior in venture capital gave smaller amounts of funding to female-led enterprises. Every senior female venture capitalist who was part of a company’s group that makes decisions was correlated to an 0.46 percentage decrease in the percentage of new female-led businesses within the investment portfolio of the firm.

As the median investment round we analyzed of $5.4 million, it is possible that the addition of one female VC senior in the VC group that makes decisions could result in female-led companies receiving around $25,000 less in funding.

To be precise, our team doesn’t believe that only women venture capitalists should be responsible for the current situation. Our study was not directed to assign personal blame. We just observed that having more females within VC groups that make decisions was associated with a lower level of funding for woman-led companies.

On first glance this could seem like an untruth. However, it’s in line with prior research that has proven that the dominance of males is firmly established within the U.S. the market for entrepreneurial finance. Based on our interviews with female entrepreneurs as well as high-level venture capitalists, it has created an environment where women tend to be more influenced by men..

Research indicates that women who are male-dominated areas are enticed to disengage themselves from less powerful women in order to increase their standing. This may explain why female venture capitalists might be reluctant to support female-led startups.

The Importance of Trust And Neutrality

My team also discovered, however that two important aspects can reduce this effect.

The first is that when senior venture capitalists of the group that made decisions collaborated previously and we didn’t notice the same negative effects. This suggests that trust is important.

If a group comprises highly neutral senior venture capitalists, as we determined by looking at public records of donations to political parties this reduces negative financial impact for female-led companies. This is due to the fact that politically neutral decision makers improve and aid in the communication of groups and the development of consensus.

Our research suggests that VC firms may want to look at innovative ways of combating gender discrimination. For instance, they could invite female investment professionals who have connections to a number of current senior venture capitalists, to serve as consultants. They could then, on their own, examine investment proposals and provide guidance to VC organizations’ decision-making committees.

In some instances the efforts to increase the status of women’s roles in the workplace might be rewarded. For instance, a study of all the companies in the S&P Composite 1500 index between 2004 and 2015 showed that demands for more diversity of gender in the boardroom were related to the presence of female directors.

As our research indicates that efforts to increase diversity don’t always work particularly in areas that are predominantly male, such as the U.S. financial market for entrepreneurs. In fact, they could backfire if they do not tackle the root causes of cultural biases and power interactions.

To be clear, our research isn’t an appeal to stop the quest for diversity in venture capitalists. Instead, it emphasizes the need to continue until women are equal in society and business generally.

What Are The Ways Companies Pay Taxes?

A company is one that was established as an entity that is legally distinct from its founders. Like an individual, it could be sued and incurred debt. It is important to note that not all businesses are businesses – they could also be partnerships, sole traders or trusts.

But incorporating, or being a business – isn’t easy or cheap it can be a costly affair, with a variety of new costs as well as obligations for a company.

However, in Australia businesses are still the most commonly used kind of business. What makes an organization so well-known, even for smaller companies?

Tax might be the solution. The corporate tax of 25% rate that small businesses pay is less than the maximum threshold tax rate that is paid by individuals, which is 45 percent.

If it was as easy as that, then we’d all decide to incorporate ourselves in order to reduce tax. However, the situation is more complex, and the trade-offs vary significantly between different businesses.

How is an entity taxed differently than individuals, sole traders or partnership? Also, if businesses can be considered “people” too – why is this different than all of us?

A Company That’s Also “Person”

According to the law, corporations are considered to be a distinct legal person (assuming directors have acted in a proper manner). This means that business’s owners aren’t personally accountable for company debt which allows them to take on greater business risks without fear of financial ruin.

This distinction is reflected in the tax system. In this case, the company is considered an individual taxpayer. Instead of marginal tax rates which increase in proportion to the increase in taxable income (as as with individuals) businesses pay an annual tax rate on their total earnings that are tax deductible.

At present currently, it is currently the Australian corporate tax rates is 30 percent as the standard rate or a lower percentage of 25 percent for businesses that have a revenue of less than $50 million.

The way companies calculate their taxable income is similar ways to people do. The deductions allowed by law from the assessable income for an entire year, you get a business’s tax-deductible income.

They also offer “pay-as-you-go” instalments of tax throughout the year (based on the tax return from previous years) in either each month or every quarter. In general, when a business submits its tax returns each year, a large portion of the tax is already paid.

Contrary to that, running your business as”sole trader “sole trader” means you and your company are an identical legal entity. the income of your business is your own.

Other options for structuring, such as trusts and partnerships, aren’t legal entities. In these agreements, both parties agree to form legal partnerships to carry out certain business activities jointly.

A trust or partnership must be required to report its net income the tax department, but it is the participants or beneficiaries of trusts who are responsible for taxation on their shares of trust or partnership earnings. The primary tax advantage of these models is their possibility of splitting income among the beneficiaries or partners.

Do They Really Pay Tax Less?

Here’s an easy example of comparing the tax payable by a company which is sole trader to a similar business that is with a structure as a company.

If, under the 2024 tax rates, you ran a small firm by yourself, and earned taxable earnings of $200,000, then you’d be taxed for an individual in the amount of $64667 (including the Medicare tax).

However, if the same company were incorporated in a corporate structure and taxed by the business is $50,000 (at the 25% lower tax rate). Simply put incorporation into a corporate structure is likely to help this small-scale business save the tax of $14,667 per year.

But wait! It’s not so simple. We must discuss what happens when the business has paid its tax.

The earnings are in the bank account of the company and are owned by the company, which is a separate legal entity. However, the individual who holds the account must have the capacity to spend the money on private items, eat out and travel on vacations.

In the end, funds must flow to the company’s owners. It could be in the form of salary payments to shareholders or directors as employees or dividends shared between owners. Then, it is regarded as an element in their individual income.

However, we do not tax twice. In Australia we have the “imputation” system for company taxation.

Profits from a company that are given to shareholders in the form of dividends constitute tax-deductible income that the shareholders. However, the company has paid the appropriate amount of tax to the company on these earnings.

To avoid having to tax the same earnings twice, dividends are paid with an “franking” credit for any taxes already paid by the business on the dividend.

Based on the example above Let’s say the owner of our small business has now formed a corporation and decided to pay the entirety of the after-tax profits of their business in the form of a dividend.

Businesses also don’t have to pay all of their earnings as dividends each year. Instead, the income flowing to people can be delayed.

The problems with tax avoidance by corporations across the globe are widely reported. However, these kinds of tax evasion are usually accomplished by deliberately utilizing different loopholes within the law, not by modifying the structure of the company in itself.

Although it’s often argued it’s not the case that tax savings shouldn’t be (and generally don’t constitute) the primary reason behind choosing a business structure. Other benefits, such as limit risk to personal and business and ease of growth flexibility and continuity are the main aspects to consider when choosing a business structure.