Section 4. New Business Enterprises
Item 1. Development of New Business Enterprises
Promoting business restructuring
Although new companies were established in succession in this way, it turned out that many of them had no prospect of turning profitable despite their original plans. Therefore, the Business Development Division established management reform as one of its policies beginning in 2002 and, as part of this effort, promoted visualization of management issues and instituted fundamental management reforms.
Consequently, out of the six companies founded based on the Entrepreneur System, four that had no prospect of turning profitable had to be liquidated and merged into others. Furthermore, as a result of implementing various management reforms, such as switching the business structure from a consumer orientation to an enterprise orientation, the number of unprofitable companies under the control of Business Development Division went down from 10 in the fiscal year ended March 2002 to only one in the fiscal year ended March 2007.