Abstract
In Japan, a law to support local entrepreneurs has come into force since 1995.
The purpose of this paper is to show the potential and the problems of local entrepreneurs supported by prefectures, and what the policy to support them should be. I would like to focus attention especially on creative smaller businesses supported by Gunma prefecture.
By investigating them thoroughly, not only regional characteristics but universal truth is pursued in the paper. Some entrepreneurs aim at being major companies, and others aim at being “excellent niche companies”, which enter the niche markets to avoid the competition with major companies and have the excellent ability of management.
This paper shows the importance of excellent niche companies.
