Azumi Yamamoto
Manager, Employment Conditions Improvement Division
Corporate Support Department
Tokyo Foundation for Employment Services

1. What Is a Social Firm?

The Tokyo Metropolitan Government is promoting social firms as places where anyone who wishes to work can play an active role by demonstrating their individuality and ability. A social firm is a “social enterprise that engages in self-sustaining economic activities in the same way as a regular corporation where those who have difficulty in finding a job can work with other employees, while providing them with the necessary support.” The Tokyo Metropolitan Government has enacted a relevant ordinance ahead of other prefectures to promote initiatives.

Social firms originated in Italy in the 1970s. With the abolition of psychiatric hospitals in Italy, social firms were established as the places for patients to work while undergoing outpatient treatment. Social firms, which aimed for the employment of persons with mental disabilities, are expanding in more countries as the people eligible for employment expand, along with the social conditions in each country. Currently, there are about 10,000 firms in Europe and 3,000 in South Korea.

２. Social Firms Promoted by the Tokyo Metropolitan Government

In December 2019, the Tokyo Metropolitan Government enacted the “Ordinance on the Promotion of Measures to Support Employment of the Citizens of Tokyo and the Promotion of the Establishment of Social Firms” (hereinafter referred to as the “Ordinance”), which is the nation’s first ordinance of this kind. In 2018, when the ordinance began to be considered, the jobs-to-applicants ratio in Tokyo had more than doubled for more than two years. However, while the employment situation was improving, there were many people who were willing to work but were unable to find work. With the increasing complexity of the society and the diversification of factors that made it difficult to find work, we realized that it was imperative to consider employment support from a broader perspective by incorporating the idea of social firms. Thus, in addition to support for general employment and welfare schemes, we decided to promote the establishment of social firms and their activities as a new employment opportunity.

3. Certification System of the Tokyo Metropolitan Government

The basic philosophy of this ordinance is “social inclusion.” Article 3, Paragraph 2 of the Ordinance states, “Employment support must be promoted based on the concept of social inclusion, in which the Tokyo Metropolitan Government, its citizens, businesses, etc. deepen their mutual understanding and work together as members of society to support one another.” “Social inclusion” means that everyone has the opportunity to participate in society without being excluded. We aim to support people with their unique characteristics by understanding, embracing, and supporting each other as individuals, while working together.

In order to support the establishment of social firms and their activities, the Tokyo Metropolitan Government certifies business establishments that are eligible for support. There are three requirements:

The first requirement is to operate with income from the business as the main source of revenue. The business establishment must generate profit from its business income and operate in a self-sustaining manner.

The second requirement is to employ a considerable number of “persons recognized as having difficulty in working” – those who wish to find work but have difficulties due to physical or mental disabilities, social, economic or other reasons, and those who are recognized as needing support by the Certification Committee of the Tokyo Metropolitan Government. Up until now, those who have been recognized by the Committee as having difficulty in finding work include persons with developmental disabilities, persons who have been released from prison, those who used to be socially withdrawn, and those who are raising children with disabilities. “To employ a considerable number of people” is defined in the certification standard as “employing at least 20% of the total number of employees and at least 3 or more persons who are recognized as having difficulty in working.”

The third requirement is that those who are recognized as having difficulty at work must work with other employees. Rather than a relationship between a leader and a person receiving guidance as in a community workshop, they must work together as colleagues.

The Certification Committee comprehensively examines whether the above three certification requirements and standards are met, including the management and employment aspects. Business establishments that meet all the criteria are certified as eligible for support as a “Tokyo-Certified Social Firm.” There are two kinds of certification: one is a preliminary certification, which is issued at the planning stage, and the other is a certification to be issued at some future date.

４. Social Firm Certified by the Tokyo Metropolitan Government

In 2020, the Tokyo Metropolitan Government recruited corporations that were willing to bear the task of becoming social firms. In March 2021, the first “Tokyo Government-certified Social Firm” was born. Currently, 31 business establishments are active as Tokyo Government-certified social firms (as of February 2023).There are various types of businesses, such as cleaning, construction, cafes and restaurants, recycling shops, printing, web businesses, etc., and the size of the businesses also varies. The website “Tokyo Social Firm” below introduces examples of social firms certified by the Tokyo Metropolitan Government.(https://www.social-firm.metro.tokyo.lg.jp/social-firm/cases/)

５. Support Provided by the Tokyo Foundation for Employment Services

The Tokyo Foundation for Employment Services has established the “Social Firm Support Center” (hereinafter called the “Support Center”), which is to support social firms certified by the Tokyo Metropolitan Government (hereinafter referred to as “certified establishments”) and to disseminate information for those that consider becoming social firms.

For certified establishments, the Tokyo Foundation for Employment Services provides various kinds of support by assigning a staff member to each establishment. The assigned staff-in-charge communicates closely with the certified establishment, regularly monitors the implementation status, and provides the establishment with necessary information concerning the operation. One kind of support is a subsidy to sustain operating expenses. Maintenance and repair cost covers construction and equipment installation for the opening of a business office at the preliminary certification stage. Personnel cost for those recognized as having difficulty in working is provided for five years after receiving the certification. We also subsidize operating expenses such as real estate rent, advertising and marketing expenses. Furthermore, to provide consulting support according to the issues and needs of each certified establishment, we dispatch experts such as small and medium-sized enterprise management consultants, labor and social security attorneys, etc. In addition, we provide opportunities for matching certified establishments with employment support organizations to create opportunities for new employment and collaboration between certified establishments and each organization.

Moreover, the Support Center’s staff members provide consultation and information to those who are considering establishing a social firm (please refer to the photo).

From now on, the Support Center will continue to support the certified self-sustaining establishments by enhancing consultations and study meetings, and to strengthen cooperation with other employment support organizations.

６. Towards the Realization of Social Inclusion

At times, I hear from people of certified establishments that at social firms, not only people who have difficulty in finding jobs can gain knowledge, skills, and experience through their work, but other people can also gain new realizations and experiences by working and growing together with them. I hope that the efforts of the social firms will lead to understanding and empathy to promote “social inclusion” and “working together,” and further expand the places where various people wanting to work can play an active role. The Tokyo Foundation for Employment Services will collaborate with the Tokyo Metropolitan Government to promote the activities of social firms and work towards the realization of social inclusion.

Social Firm Support Center