SMEs are called challenger brands in the U.S., where venture capital is highly popular.
This was something I learned from a Quartz article.
I was often asked about the number of employees in my company whenever I met with businesspeople in Beijing a few years ago. I later found out that they had asked this question because they consider companies with more than 200 employees to be solid companies. After that, we would all agree in advance that whenever a Chinese startup company comes to visit us and asks the same question, we would tell them, “We have 200 employees!” (laughs)
What Hideto Fujino said on the program was also interesting. (see below)
70% of Japanese companies have seen their stock prices rise over the last 10 years. The average stock price of the 1,700 companies whose stock prices have risen has doubled in this time.
Companies that have grown share three key attributes: local, small, and privately owned.
In the case of Tokyo, the stock prices of large corporations with a long history in Otemachi and Marunouchi have not done well, while challenger brands in Minato, Shibuya, and Shinjuku have had a positive performance.
The JASDAQ is up 43%, while the TSE2 is up 67%.
On the other hand, the Topix Core 30 Index, which comprises the 30 companies with the largest market capitalization, has plunged by 24%.
I believe that challenger brands will do even better in the post-COVID era since they can execute their ideas quickly and act swiftly!
◆References: Makoto Naruke with Hideto Fujino, “Stock investment × Japanese growth companies”