That's because, if you've ever thought "I'm launching a new business, so I want to build a website," "I want to launch a new e-commerce site," or "I want to create a smartphone app and run an interesting campaign," I'm going to tell you about programs that subsidize most of these production costs and other expenses.

So what are these programs? ...As the title says, it's about making use of "subsidies."

National and local governments, including prefectures, offer programs that support small and medium-sized businesses by periodically providing cash back for part of the expenses involved in projects or plans that meet certain requirements.
If you can make good use of them, you can reduce the risk of your initial investment and make bold investments.
That said, not many people are taking full advantage of these programs. One major reason is that subsidy programs "aren't available anytime—if the timing doesn't line up, you can't use them." Most subsidies have a set application period known as the public call period, and most of these are limited to just one or two months. Announcements aren't always thorough either, so it's not uncommon to think, "It ended before I even knew about it, orz."

In this article I'll introduce five subsidies that can also be used for IT initiatives such as website production, but as of today (June 3, 2017) only two of them are currently accepting applications. Still, even those whose application periods have already closed are likely to be offered again in the near future. So it certainly won't hurt to keep them in the back of your mind.

What exactly is a subsidy?

If you're a business owner, you've surely heard about subsidies at least once... and yet, quite a few people have the wrong idea about them. So let me go over the basics of what a subsidy is once more.
Regardless of the amount or scale, subsidies share the following characteristics.

The project must meet "certain requirements"

Many subsidies require that the funds support investment expenses "for research and development or market development to start a new business" or "for productivity improvements that reduce the burden on employees or improve profitability."
When you apply, you also have to demonstrate whether your business is genuinely new, or whether your plan contributes to improved productivity.
In most cases, purchases of general-purpose items such as cars and computers are not eligible.

Applying doesn't guarantee you'll receive it!

If your project meets the requirements, you can apply to use a subsidy. However! With subsidies, not every application is approved.
The overall flow for using a subsidy is roughly as follows.

1. Apply during the designated public call period
2. A review committee is held, and projects judged highly feasible and beneficial are selected
3. Make the investment in line with your plan
4. Submit a payment request once implementation is complete

So if you aren't selected at the review committee in step 2, that's the end of it.
Incidentally, separate from subsidies (hojokin), there is also a system called "grants" (joseikin.) Unlike subsidies, grants have the characteristic that you are guaranteed to receive them as long as you meet certain requirements.
I'd like to cover grants another time, so I'll leave them aside here.

Cash back is given for what you actually carry out and pay for according to the approved plan

As you can see from the usage flow mentioned above, in a nutshell it goes: "apply during the public call → selection → implementation → payment → payment request → receipt of funds."
The key point to remember is that it's "cash back for what you have introduced and paid for."

When subsidies come up, quite a few people focus only on the "Really? I can get money?" part. That's not wrong in itself, but if you forget that you have to invest first, you lose sight of the essence of subsidies: "investing to produce business results."

Subsidies you can use for website production and more

So from here, let me introduce five subsidies you can use for things like website production, online shops, and smartphone apps.

IT Introduction Subsidy

A new national subsidy introduced with the FY2016 supplementary budget. If you make IT investments that contribute to productivity improvement, two-thirds of the expenses involved are subsidized.
Applications are currently open until June 30, 2017.

Reference website: IT Introduction Subsidy / Merci IT Introduction Subsidy Special Site

Subsidy for Projects to Improve the Management Capabilities of Small Businesses

A subsidy run by Shizuoka Prefecture. If you make investments related to "new initiatives" that contribute to "developing new demand" or "improving productivity," two-thirds of the expenses involved are subsidized.
Applications are currently open until June 30, 2017.

Reference website: Shizuoka Prefecture Official Website: Application Procedures for the Small Business Management Capability Improvement Project Subsidy

Small Business Sustainability Subsidy

A national subsidy introduced with the FY2013 supplementary budget. If you make worthwhile investments in market development and other efforts carried out based on a business plan, two-thirds of the expenses involved are subsidized.

Reference website: Small and Medium Enterprise Agency: Support for Small Businesses

Community-Based Business New Venture (Market Development) Grant Program

A prefectural subsidy introduced with the FY2007 budget. For projects that develop sales channels for new products and the like, half of the expenses involved are subsidized.

Reference website: Shizuoka Industrial Foundation: Regional Revitalization Project Grants

Subsidy for Innovative Manufacturing, Commerce and Service Development

A subsidy run by the national government. If you make capital investments that contribute to innovative service development, prototype development, or production process improvements that enhance management capability, two-thirds of the expenses involved are subsidized. It's divided into several courses, and the appeal is the large amounts subsidized—from 5 million to 30 million yen.

Reference website: Small and Medium Enterprise Agency: Support for Small and Medium Manufacturers

If you're considering website production using a subsidy... leave it to us

What did you think?
I get the sense that the "IT Introduction Subsidy," "Small Business Sustainability Subsidy," and "Subsidy for Innovative Manufacturing, Commerce and Service Development" that I've touched on in previous articles are now fairly well known—but weren't there some you hadn't heard of yet?

Making use of subsidies requires the right timing and meeting the requirements, and even if you apply you may not be selected, so there's no guarantee you'll get one. That means there are risks in moving forward with a plan on the assumption that you'll receive a subsidy.
For example, it's entirely possible to miss a business opportunity because you put off investing until your subsidy was approved. And this is just my personal view, but I believe getting your website to produce results in attracting customers quickly is more important than whether or not a subsidy gets approved.
Frankly, a few hundred thousand yen is an amount you can recoup right away once your site starts bringing in customers (lol)

That said, "subsidies" are a right that only we small and medium-sized business operators can use. I do think you should absolutely try for the ones you can use.
If you want to make use of a subsidy, the first step is to consult your local society of commerce and industry / chamber of commerce or an expert.
When it comes to using IT-related subsidies, we have plenty of know-how, and besides myself we have experts with IT Coordinator qualifications.

Feel free to get in touch—even just for a consultation. We look forward to hearing from you (lol)