Today’s Business Japanese is “Kojin-Hoshou　（Personal Warranty）”.

Japanese banks have “Yuutan-Gensoku (Collateral Principle)”.  They have always taken collateral when they lend money from the borrowers.

They intended to relieve their risk in case of bad debt.

In other words, Japanese banks is not able to evaluate whether the incubation goes successful.

In case of small companies, Japanese banks require company owner’s house and property as collateral.  This is so called “Kojin-Hoshou”.

If the company owner fails in their business, they will lose everything including their house and savings and they can not live an ordinary life.

Therefore, it is told to be one of the reasons why there are not many entrepreneurs in Japan.

It is said that Japanese banks lend umbrella when it is sunny and take it away when it rains.

They actually do not play their role to incubate small business and help entrepreneurs.

Tsubasa Japanese Language School

Japanese Language School in Roppongi, Tokyo

Today’s Business Japanese is “Kabunushi-teian (Shareholder Proposal)”.

Many Japanese companies quitted “Kabu no Mochiai (Keeping stocks with each other among group companies)” and accepted foreign institutional investors.  Recently, “Kabunushi-teian” is increasing.

Some examples of “Kabunushi-teian” are “to fire chairman and president because both of them are occupied by the founder’s family and it is not effective” and “To sell traditional Department from huge retailer group”.

Board of Directors no longer run the companies with their own perspective.

However, Japan as a whole society should welcome this heathy corporate governance.

Tsubasa Japanese Language School

2 minutes walk away from Roppongi station

Tokyo

Today’s Business Japanese is “Shachiku”.

“Shachiku” is “Kachiku (Domestic animals) of Kaisha (Company)”, implying that Japanese business persons are “Kachiku (Domestic animals)” of “Kaisha (company)”　because they are fed and tamed in the barn for their entire life.

In the bubble economy period (1980～1990), “Corporate worriers” is used as the same meaning with “Shachiku”.

What an empty and helpless word!

I know some of them work with their own will, but . . .