Ministry of Economy, Trade and Industry (METI) and ASEAN-Japan related organizations co-hosted the ASEAN-Japan Business Week 2023 from 5 (Tue) to 9 (Fri) June 2023. During this week, commemorative ceremonies, series of webinars and seminars with themes of “innovation” and “sustainability” were held.
In this series of events, companies and experts from Japan and ASEAN took the podium to keep up with the direction and speed of change, focusing on ASEAN businesses.
In this year’s ASEAN-Business Week, the presentation of interim report on “ASEAN-Japan Economic Co-Creation Vision” was announced. The various discussions were taken place by experts from different fields, including updates on ASEAN business trends, and introduction of leading business initiatives.
ASEAN-Japan Centre held a programme on the second day of the Business Week, June 6th (Tuesday) from 13:00 to 14:30, with the theme of “Harnessing Social Innovation for Inclusive and Sustainable Economic Development.”
The role of social enterprises, impact investment (Investment actions intended to simultaneously generate positive and measurable social and environmental impacts alongside financial returns ), and social innovation (Innovative solutions to social problems ) were discussed.
This is a part of the activities of program 2.1: “Promotion of Sustainable and Responsible Impact Investment from Japan to ASEAN” in Goal 2. “Sustainable Impact Investment” of the AJC’s medium-term strategic plan “AJC 5.0“.
Key Takeaways:
Social Innovation, The power of “and”, Made with Japan：
In the keynote speech by Mr. Ken Shibusawa, the founding CEO of Shibusawa & Company, the social innovations that occurred in Japan 150 years ago, such as banks, paper companies, the textile industry, and girls’ education, were introduced.
In addition, he emphasized the interaction between individuals and the innovation created through the connection of various actors through the concept of “and.”
The speech highlighted the power of the word “and” in bringing new business creations and its essential role in being inclusive and sustainable. Lastly, the speech advocated for aiming for a positive cycle of growth and distribution and emphasized the importance of Japan’s future in “Made with Japan,” which signifies Japan’s continuous connection with the world.
Fintech Journal 2023 https://www.sbbit.jp/article/fj/106129
Stanford Graduate School of Business https://www.gsb.stanford.edu/experience/about/centers-institutes/csi/defining-social-innovation
Leveraging Social Innovation, Achieving Impact Investing in Practice：
In a panel discussion attended by social entrepreneurs and impact investors from ASEAN and Japan, the participants deliberated on how social innovation can be utilized to promote impact investment.
First, the panellists who run social enterprises, Mr. Febriadi Pratama, co-founder of GRINGGO, and Mr. Grace David, CEO of Edukasyon.ph, argued that the activities of social enterprises are regarded as philanthropic activities by investors.
As a result, they face dilemma of not being seen as a “profitable business”. In this regard, it was discussed that it is important to appeal to investors the business of social enterprises as being comparable to other profitable businesses.
Panellists who run venture capital companies that invest in social enterprises, Mr. Sunit Sheresta, Founder, ChangeFusion Group and Mr. Akitaka Wilhelm Fujii, President, Real Tech Holdings Co., Ltd., commented that the current size of the impact investment market is relatively small, and the entrant companies in this market are few. Yet, they foresee that the number of companies who do business in impact investment will be increased, and the impact investment will be common in the near future.
They also emphasized the numerous co-creation opportunities between Japan and ASEAN in the realm of social innovation, enabling them to bring forth solutions and complement each other’s shortcomings.
The significance of sustainability was well recognized and moved to practical implementation, as social innovation contributes to the creation of new products, markets, and efficient resource utilization.
The importance of taking action was emphasized by the panellists throughout the discussion, and it resonated convincingly since these young social entrepreneurs and investors from ASEAN and Japan are real leaders.
Way Forward：
In the globalized world, in the near future, it will become commonplace for business activities to contribute to solving social issues that transcend national borders, such as climate change, disaster prevention, waste disposal, infectious diseases, the advancement of agriculture, and educational disparities, and more companies are expected to enter the social innovation ecosystem.
AJC will promote social innovation as a hub / node for various actors such as entrepreneurs, investors, governments, and private companies.
