Japan's small businesses are facing a perfect storm in 2025 as corporate bankruptcies hit a 12-year high, testing Prime Minister Sanae Takaichi's economic strategy. Dubbed 'the Takaichi Fallout,' this crisis reveals cracks in the world's third-largest economy – and young entrepreneurs are watching closely. 📈🔍
By the Numbers: Survival Mode Activated
New data shows 5,172 companies collapsed between April-September this year, with 70% involving firms holding under ¥100 million in liabilities – the highest proportion since 1995. Labor shortages triggered 202 failures alone, proving even viral 'help wanted' TikTok campaigns can't solve this crisis. 💼🚨
Why Your Ramen Shop Might Disappear
Family-run restaurants and local manufacturers are getting squeezed by:
• 15% spike in operating costs since 2024
• Wages up 5.3% year-on-year
• Chronic 2:1 job-to-applicant ratios
'It’s like playing Jenga with half the blocks missing,' says Tokyo economist Haruto Sato. 🍜⚖️
Takaichi's High-Stakes Balancing Act
As critics coin the term 'Takaichi-cost' to describe mounting pressures, the PM faces growing scrutiny over her stimulus plans. With bankruptcies rising for four consecutive years, 2025's economic roadmap needs more than Band-Aid solutions. Will this be Japan's wake-up call or a new normal? 🇯🇵⏳
Reference(s):
'The Takaichi Fallout': Rising bankruptcies test Japan's economy
cgtn.com








