European Grants for SMEs in Japan

Published on October 31, 2025 and written by Cyril Jarnias

Global economic integration has partially redefined the corporate landscape, and in this context, small and medium-sized enterprises (SMEs) play an essential role in driving innovation and competitiveness. However, access to financing remains a major challenge for these entities, particularly in Japan. This is where European grants come into play, offering new prospects for Japanese SMEs looking to engage in the international market. This article explores the opportunities provided by these valuable aids, analyzing the impact of such grants on economic development and the expansion of business horizons for Japanese companies seeking to thrive in a globalized economy.

European Grants for SMEs in Japan: An Opportunity to Seize

The European grant system is an important resource for Japanese SMEs to enhance their competitiveness and growth in the international market. Below, we explain in detail the types of European grants, the criteria SMEs must meet, the easily supported sectors, and their concrete impacts.

Types of Grants Available in Europe

• Overseas Expansion Support Type
  • Grants for market research costs, trade show participation fees, local subsidiary establishment costs, etc.
  • Example: JETRO’s Export Business Model Demonstration Program.
• Technology Development and R&D Type
  • Grants for innovative product or technology development projects.
  • Example: Programs offered by the New Energy and Industrial Technology Development Organization (NEDO).
• Environmental Response Type (Decarbonization and SDGs)
  • Projects aimed at promoting societal decarbonization or the introduction of renewable energy.
• Specialized Regional Programs
  • Preferential measures by country or by the EU. For example, in Belgium, there are grants for strategic transformation projects.

Qualification Criteria and Application Conditions

• Be an SME (fewer than 250 employees and annual turnover below 50 million euros).
• Have a clear business plan and anticipate results within five years.
• In some cases, a wage enhancement plan exceeding the target wage increase or minimum wage level is also required.

Easily Supported Industrial Sectors

• Environmental protection and green technologies.
• Digitalization promotion sectors (introduction of IT solutions, etc.).
• Medical and biotechnology.
• Manufacturing and service industries leading to international trade expansion.

Competitiveness and Advantages

1. Market Entry Promotion
   Grants reduce the burden of initial investment and lower barriers to entering new markets. For example, trade show participation costs and support for establishing local subsidiaries.
2. Innovation Promotion
   Capital infusion for technological innovation strengthens competitiveness. It also includes intellectual property strategies, such as patent acquisition.
3. Strengthening International Partnerships
   Contributes to strengthening ties within and outside Europe and can lead to the formation of new networks.
4. Enhancing Sustainability
   Investing in environmentally conscious projects helps achieve SDGs while improving brand value.

Success Examples and Impacts

Some SMEs have successfully expanded their overseas sales channels and increased their revenue using these programs. For example, Japanese food processing company A, which entered Belgium from Japan, participated in the Strategic Transformation Project and achieved a 20% increase in market share. Such testimonials show that economic effects spread not only to the SMEs themselves but also to their business partners.

Application Procedures and Resource Utilization

1. Eligibility Criteria Verification: Gathering information from public notices or certified consultants.
2. Document Preparation Support: Possible consultation with national and international collaborative organizations, such as JETRO or the SME Development Organization.
3. Awareness of Proposal Call Schedules: Regular checking for updates as they can change annually.
4. Verification of Local Government Autonomous Measures: Many useful measures at the local level, such as the Tokyo Market Development Project.

Consequently, if Japanese SMEs maximize the use of these various European support systems, they can not only conquer new markets but also enhance their brand value. Continuous participation in educational seminars would also be beneficial.

Practical Guide to Accessing European Funding

For Japanese small and medium-sized enterprises (SMEs) to obtain funds from the European Union (EU), it is important to understand and utilize the following steps, procedures, eligibility criteria, and support resources.

1. Grant Programs Available for Non-EU Companies

Program	Description
COSME Program	EU’s main grant program designed for SMEs, aiming to improve market access and provide financial support. Includes loan guarantee schemes.
European Fund for Strategic Investments (EFSI)	Offers direct or indirect financial support to SMEs and can support high-risk projects.
Regional Programs	Example: In Hungary, interest-free loan systems for specific regions like GINOP Plusz.

2. Eligibility Criteria

• To be recognized as an SME by the EU, a company must have fewer than 250 employees and an annual turnover below 50 million euros.
• Even when applying from Japan, it is necessary to meet the relevant criteria.
• Submission of a detailed business plan and an economic impact analysis is required.

3. Required Administrative Procedures

• Submission of application documents via national government portals and related EU institutions.
• Application through regional banks or partner institutions.

4. Available Support Resources and Online Platforms

Resource	Description
Enterprise Europe Network (EEN)	Provides internationalization support information for SMEs as well as advisory services.
SME Helpdesk for Intellectual Property Rights	Intellectual property support tools.
Mandalore IndustryTech Growth Fund	Provides a dedicated fund for Japanese startups in the robotics field.

5. Tips to Improve Success Rates

1. Collaboration with Experts: It is advisable to benefit from the support of partner consulting firms.
2. Participation in Webinars: Promotes learning about current European market trends.
3. Cultural Adaptation: Develop flexible content based on local market needs.

Success examples include the successful entry of the Japanese luxury toothbrush brand MISOKA into the high-end French market, as well as the establishment of a new robotics factory using Mandalore IndustryTech. Thus, by taking appropriate measures and progressing step by step, greater success can be expected.

Impact of EU Structural Funds on Japanese SMEs’ Economy

The European Union (EU) Structural Fund aims to correct economic and social imbalances between regions of member states and support sustainable growth and job creation. These funds particularly emphasize supporting small and medium-sized enterprises (SMEs), fostering economic development and enhancing competitiveness.

Nature and Objectives of European Structural Funds

• Correcting Regional Disparities: promoting economic activities in disadvantaged regions by improving infrastructure and creating jobs.
• Supporting SMEs: improving financing capacity and market access.
• Promoting Sustainability: attention to the environmental dimension, particularly through the adoption of green technologies.

Mechanisms and Conditions Accessible to Japanese SMEs

1. Eligible Company Size: for example, a workforce of 250 employees or an annual turnover above 40 million euros.
2. Eligibility Criteria: the project must align with EU policy objectives (e.g., promoting sustainability).
3. Application Procedure: eligibility to participate in the program is determined in consultation with national governments or local authorities.

Concretely, after establishing a local subsidiary, Japanese companies can apply for environmental protection or digitalization promotion projects. In this process, it may be necessary to seek expert consultations.

Examples of Grant Utilization and Results

For example, Japanese manufacturing company A (hypothetical name) received funding for a plan to introduce renewable energy at its site in France. This led to new equipment investments, resulting in a 20% increase in production efficiency and a 10% reduction in operating costs. Moreover, the use of such grants also contributed to strengthening competitiveness in the market.

Challenges and Obstacles Faced by Japanese SMEs

1. Difficulty Meeting Complex Procedure Requirements: multi-level evaluation system, burden of document preparation in English, etc.
2. Lack of Information Problem: situations where they don’t know whom to contact are often observed.
3. Insufficient Response to Cultural Gap: examples where adaptation is difficult due to insufficient understanding of “local regulations.”

It is suggested to overcome these obstacles by utilizing specialized agencies. Furthermore, leveraging networks of public institutions such as JETRO is considered important.

Medium and Long-Term Impact Assessment

Focusing on the medium and long term, the following conclusions can be drawn:

• Points directly reflected by economic indicators – increase in GDP contribution, decrease in job cessation rate indicating significant importance of statistics.