Abstract
This paper examines the survival factors of new business developing SMEs in Japan. Based upon the data collected from 1233 responses to a nation-wide mail and telephone surveys of these firms in Japan, it is found that there were seven determinant survival factors. Among these, well-understanding of business community, no cost-based strategy and resource or knowledge based strategy were common key factors. There were two determinant survival factors for the young SMEs: Proactive behavior such as quick market penetration and introduction of new products and services, and the innovativeness. For the growing SMEs, there were seven determinant survival factors. Among these, the resource or knowledge based strategy and low risk market positioning were found as key factors. The common survival factor for young, growing and all sample firms is related to interaction with their customers.
