Is Japan Ready for More Female Leadership in Business?

In October, Japan marked a historic milestone with the appointment of its first female prime minister, Sanae Takaichi. While many celebrate this achievement as a pivotal moment for women in the nation, concerns linger regarding whether her conservative policies will truly impact the deep-seated issues of gender inequality.

There is a consensus among both supporters and critics that Japan must increase the representation of women in leadership roles within both business and government sectors. Despite being a highly developed economy, Japan exhibits notably low levels of gender equality.

This year, the country ranked 118th out of 148 on the World Economic Forum’s Gender Gap Index, making it the lowest performer among the 38 member countries of the Organisation for Economic Co-operation and Development (OECD).

Government Targets and Business Representation

The Japanese government had previously set an ambitious goal of having women occupy 30% of leadership positions across all societal sectors by 2020; however, this deadline was discreetly extended by ten years by the end of that year. Currently, women’s representation in business leadership stands at just 11.1%.

Nonetheless, gradual progress is being made. Yumiko Murakami, co-founder of MPower Partners, Japan’s pioneering female-led venture capital firm, acknowledges that the nation has improved female labor market participation significantly.

Over the last 15 years, the employment rate of women aged 15 to 64 has consistently risen, surpassing the OECD average by the early 2010s, and reaching over 77% this year, which exceeds the 70% figure in the United States.

Economic Necessity and Policy Changes

Japan’s aging demographic and labor shortages necessitate the increased involvement of women in the workforce. Ms. Murakami highlights crucial governmental initiatives aimed at reducing nursery waiting lists, enabling young mothers to return to work sooner.

However, there remains a significant challenge—women in Japan earn, on average, only 70 to 80% of what their male colleagues make, according to a government survey conducted in 2024. This disparity is what Ms. Murakami and her co-founders seek to address through their firm’s WPower fund, which is dedicated to supporting female entrepreneurs and businesses focused on women’s empowerment.

“There are really, really interesting and good female founders or minority founders,” Ms. Murakami states. “But they may not get the same level of access to capital in the same way as male founders do, which creates opportunities for people like us [as investors].”

The Tokyo Metropolitan Government contributed half the capital for the fund, with the rest sourced from private sector partners. Ms. Murakami expressed optimism regarding the level of interest they garnered, yet cautioned that the predominantly male environment of Japan’s venture capital sector poses challenges for female entrepreneurs seeking funding and information.

“The venture capital industry is very closed in a way. If you’re in, if you’re an insider, then it’s great because you are connected with everybody and the information travels really quickly. But, if you are not, then it’s really hard – you just don’t get a lot of information,” she explained.

Challenges and Support for Female Entrepreneurs

The gender disparity—characterized by female entrepreneurs and male investors—has also contributed to incidents of sexual harassment. A survey from 2024 revealed that over half of female entrepreneurs reported experiencing sexual harassment in the previous year.

Increased media attention has shed light on this issue, with numerous victims sharing accounts of sexual assault or being coerced into trading sexual favors for investment opportunities. In response, the Ministry of Economy, Trade and Industry announced a government survey in August 2025 to evaluate the extent of the problem.

Startup Lady, an organization dedicated to supporting female founders, prioritizes safety as a core concern. Co-founder Moeko Suzuki, along with her partners, established the organization a decade ago to fill the gap in support for aspiring female entrepreneurs from all backgrounds in Japan.

“We started to think that we should create some safe space for women, and also a place for female entrepreneurs to get together, talk about business, ease their mind, and also get the mindset,” Ms. Suzuki noted.

This year, they are partnering with a local Tokyo government to host a series of lectures and workshops covering various topics, from fundraising to deal closure, along with one-on-one mentoring and networking opportunities. However, these events have predominantly attracted non-Japanese female entrepreneurs, highlighting a lack of local role models to inspire younger generations.

Addressing Educational Gender Bias

Gender stereotypes continue to influence educational choices in Japan, as the country has one of the lowest percentages of female students pursuing STEM (science, technology, engineering, and mathematics) fields among OECD nations. At Tokyo University, one of Japan’s most esteemed institutions, women comprise only 20% of undergraduates, with even fewer as researchers.

To combat this issue, the university introduced the UTokyo Gender Equity #WeChange initiative in 2022, aiming to elevate the percentage of female faculty members from 16% to 25% by the conclusion of the 2027 academic year. To facilitate this goal, the university is providing financial incentives to departments that recruit female faculty, potentially subsidizing the costs for up to five years.

As a result, the ratio of female faculty has risen to nearly 18%. Prof. Kaori Hayashi, Tokyo University’s executive vice president leading the initiative, acknowledges that while progress has been made, challenges persist due to a limited pool of candidates.

The Role of Political Leadership

Despite these hurdles, the most prominent role model for women in Japan today may well be Prime Minister Sanae Takaichi, a leader of Japan’s Liberal Democratic Party (LDP). Her rise has been recognized by many as a breakthrough for female political representation in a nation where such empowerment is significantly lacking compared to its OECD peers.

However, her conservative stances, including opposition to proposed laws allowing women to retain their surnames after marriage, have led some to question the potential for genuine change. Youth activist Momoko Nojo expressed skepticism, stating, “I understand that some people are encouraged by the idea that a woman can become prime minister, but I don’t think it will lead to the realization of gender equality policies.”

In a nation striving to cultivate more female leaders across various sectors, the election of Sanae Takaichi is undeniably significant. Regardless of differing opinions on her role as a model, she has established that women in Japan can ascend to the highest echelons of leadership.