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[Interview: Hiromi Okuda]
"Healthy Envy" Cultivates Entrepreneurs

The Future of Startups as Seen from the Reality of Failure and Fandom-like Support

The ICT Startup League goes beyond mere entrepreneurial support, providing a platform for competition and co-creation to produce world-class startups from Japan, regardless of age, gender, region, or background. Through "oshi-katsu" (fandom-like) support, a hands-on community, and the intersection of diverse talent from regional and international spheres, it continues to tackle the challenge of changing society from a global perspective.

As a member of the ICT Startup League's steering committee and CEO of WizGroup, Inc., Hiromi Okuda continues to forge ahead as an entrepreneur while also supporting "challengers" as an angel investor in various fields, both in regional Japan and overseas.

"Why do people take on challenges?" "What kind of support is truly necessary?"

We spoke with Ms. Okuda about the "people" and "places" necessary for startups, based on her real-life experiences.

From setbacks and comebacks in regional areas and abroad, to the front lines of community building and her unique perspective as an investor, you are sure to find hints for your own future challenges.

■Profile

Hiromi Okuda

Hiromi Okuda
CEO, WizGroup, Inc.

Completed her postgraduate studies in social work at the University of Mumbai (formerly the University of Bombay, India). In 1991, she started a conference business specializing in IT. In 2001, she founded WizGroup, Inc. In 2013, she established Takaranoyama Inc. in a depopulated area, launching a business to explore what IT can do to address local social issues. Her committee roles include: Judging Committee Chair for the Ministry of the Environment's "Environment Startup Award," Judge for the Ministry of Economy, Trade and Industry's "MITOU IT Human Resource Discovery and Development Program," and a member of the Ministry of Health, Labour and Welfare's "Council for the Promotion of Healthcare Ventures." Her books include "Just Do What Excites You!" (PHP Institute, Inc.).

I apologize for starting with the topic of "failure," but I believe it's inseparable from the startup journey. Could you begin by telling us about any failures you've experienced and the lessons you've learned from them?

Okuda: Failures? I've probably had a "fatal" number of business failures. To be specific, I once created a virtual exhibition system. Google immediately adopted it, so we invested heavily in its development. However, not a single other company followed suit. There were failures like that, where a business just didn't take off, as well as failures caused by societal issues, like when all our sales vanished during the Lehman Shock. Then there were human failures, like having people I counted on just leave.

So you've experienced enough failures to be able to categorize them.

Okuda: But the reason I can laugh about it now is perspective. For example, if you spill the coffee in front of you, that's a failure, right? But you can just wipe it up. Business failures and other setbacks might be failures at that moment, but if you can deal with them and move on to the next stage, you can look back on them as minor. The company I started to create IT-related businesses in regional areas was a huge failure at first; we couldn't generate sales from just living lab-style projects. However, the experience of traveling all over Japan to set up that company led to my current work with regional accelerators. I'm utterly convinced that my current business is built on top of those failures.

It seems like it would be difficult to maintain motivation after experiencing failure so many times. What is needed in a "place" or environment to increase the number of people who want to start businesses and foster aspiring entrepreneurs?

Okuda: I think it’s important to be in close proximity to people who are entrepreneurs or are doing something interesting, even if you don't have a business idea or a strong will to start one yourself. That feeling might be admiration, or conversely, it could be "envy," or even a dislike for that person. But if you can't stop thinking about them, you should try to get closer. The entrepreneurial spirit is often said to be like an "infectious disease."

An infectious disease!?

Okuda: The feeling that something looks incredibly difficult but also interesting and rewarding doesn't spread from reading a book. It spreads when you see entrepreneurs up close, whether in a community, at a drinking party, or elsewhere. "Infectious" might not be the right word for our times, so let's rephrase it as "transmitted." It gets transmitted by being nearby.

So if there's an opportunity, even at an event...

Okuda: Events are good, too. But there's a distance between the stage and the audience, so it's better to get a bit closer. And surprisingly, feelings like, "Look at that guy, living the good life," are actually quite important.

So negative emotions are also important?

Okuda: People who become entrepreneurs are very sensitive to those negative emotions. In fact, I believe "envy" has been the greatest cultivator of entrepreneurs. An entrepreneur once called it "healthy envy." The reason entrepreneurship is thriving at places like the University of Tokyo or Keio University is largely because of this "people inspiring people" effect—the feeling that "if *that guy* who sat next to me can do this, then I should be able to do even more."

So the idea is to gather in close proximity, where the spirit is transmitted, envy is felt, and people are inspired to act.

Okuda: Yes. I certainly didn't grow up wanting to be an entrepreneur. I was born in the countryside of Kagoshima and grew up at the foot of Yakushima and Kirishima, and in Akune, a fishing town. There was a huge information gap, and entrepreneurs seemed like people from a distant world. But encountering a community of such entrepreneurs in my 20s was a huge turning point for me. Humans can easily become what they have "seen." You can't become something you've never seen. So, just like a child sees a professional soccer player and decides to become one, I believe the significance of the ICT Startup League lies in showing entrepreneurs to young people in regional areas.

What are your thoughts on the significance of providing hands-on support to entrepreneurs?

Okuda: I'm also active as an angel investor, and for me, it feels like "riding in the second row of a roller coaster." The entrepreneur is in the very front seat, and I get to ride a little behind them, getting a view of the whole journey. It's very rare for a startup to go smoothly from beginning to end, so I see it as getting a ride on their roller coaster. When you see an entrepreneur so genuinely confronting a societal challenge, you simply want to cheer for them.

How many roller coasters have you ridden?

Okuda: I've worked alongside probably over 100 entrepreneurs, and I've come to realize that there are almost no entrepreneurs who don't break mentally at some point.

From your perspective, there are no entrepreneurs who don't break?

Okuda: None. I don't know a single entrepreneur who hasn't been broken or hit a low point somewhere along the way. That includes those who are successful now and other famous figures; they've all overcome incredible crises.

What should one do when they feel like they're about to break?

Okuda: When you feel like you're about to break, I believe it's "people" who ultimately help you. When you think you can't go on, there are people who support you. Conversely, having people like us around, who have already overcome those challenges, can make them think, "If they could get through it, there's no way I can't." I think seeing the example of those who have gone before you is incredibly important.

The ICT Startup League provides development grants as well as "fandom-like" hands-on support. Is this based on the perspective that "people" are what's most important in starting a business?

Okuda: Money is important, of course, but it's not everything. In my own case, it was not just the people who supported me financially when I started my business, but also the ones who said, "I'll follow you," and "Let's get through this tough time together," that enabled me to continue. A company is not a sole proprietorship. It's about having a certain number of people who believe in you and want to change society through that business. The second person is crucial. The presence of that "second person to join the dance" is so important. More than one person raising a flag, the most vital thing for a company is having that second person who runs towards the flag with you.

■About the ICT Startup League
This is a support program launched in FY2023, originating from the Ministry of Internal Affairs and Communications' "Program to Support R&D for Early-Stage Startups."
The ICT Startup League supports startups through four pillars:
① R&D Funding / Hands-on Support
Provides up to 20 million JPY in R&D funding in the form of a subsidy. Additionally, the selection committee members who chose the league participants will continue to provide hands-on support to foster growth. For companies that committee members were particularly passionate about selecting, they will offer continuous support, including advice on business plans and growth opportunities, creating a true "fandom-like" support system.
② Discovery & Development
Provides opportunities for learning and networking to promote the business growth of league members.
It also focuses on discovering future entrepreneurs to expand the base of the ecosystem.
③ Competition & Co-creation
Functioning as a positive competitive arena like a sports league, startups learn together and push each other to win the funding they truly need (up to 20 million JPY). It also provides a venue for co-creation, where league members can collaborate and expand their businesses through various opportunities, including sessions with selection committee members.
④ Promotion & Outreach
The initiatives of league members will be promoted in collaboration with the media. By sharing their business with a wider audience, the league aims to expand opportunities for new matching and chances.