Conversations with Hiroshi Mikitani

Summary

The speaker discusses founding their business to empower communities and challenge large retailers. They emphasize the difficulties in changing employee mindsets and highlight the cultural transformation within Rakuten, particularly the decision to conduct all business in English. This shift, implemented in 2010, was aimed at fostering globalization and improving recruitment. The speaker reflects on the impact of this decision over the years.

Takeaways

• 🌍 The business was started to empower local merchants and the community, in contrast to competing with large retailers.
• 🗣️ In 2010, the company switched its internal language to English to foster globalization and overcome recruitment challenges.
• 🤖 There are not enough computer science graduates in Japan, leading the company to hire talent from other countries.
• 🇯🇵 Japanese language can create ambiguity in communication, which is why switching to English was essential for clear decision-making.
• 🌐 The company's goal is to become a global service company, which necessitates a diverse workforce and communication in a universal language.
• 💡 The CEO believes that having Japanese people only speak Japanese will create divisions in the company, which is why all employees need to work in English.
• 💪 The CEO feels that their company's mission is fundamentally different from other giants as they aim to empower local communities rather than dominate the market.
• 👥 The company has successfully hired 80% of its new engineers from outside Japan, mainly from China and India.
• 🚧 Despite believing in globalization, the CEO acknowledges the current trend of rising barriers globally but believes these challenges will be overcome.
• 📈 The CEO encourages young people to be entrepreneurial and emphasizes that becoming a leader and making a societal impact is the true essence of entrepreneurship.

Q & A

Why did the speaker start their business?

The speaker started their business to empower the local community and merchants, aiming to create an alternative to large retailers.

What was the fundamental reason for switching the company's internal language to English?

The switch to English was made to address language barriers, facilitate recruitment, and align with the company's goal of becoming a global service provider.

How did the speaker anticipate recruitment challenges in Japan?

The speaker recognized that Japan had a limited number of computer science graduates compared to other countries, which would make it difficult to recruit sufficient tech talent locally.

How did the company's employees initially respond to the language change?

The speaker anticipated significant pushback, so they announced the change publicly to ensure everyone understood the commitment and necessity for the company's global goals.

Why does the speaker believe that Japanese culture can benefit from globalization?

The speaker believes that globalization will break down language barriers, reduce ambiguity, and make Japanese companies more competitive internationally.

What cultural differences did the speaker identify between English and Japanese in a business context?

The speaker noted that Japanese, being more ambiguous, could make decision-making less clear, whereas English provides more direct communication, which is beneficial for planning and operations.

Why does the speaker think other Japanese companies have not adopted a similar language policy?

The speaker suggests that other companies lack the same level of commitment and may not have prioritized globalization as strongly as his company.

How does the speaker define an entrepreneur?

The speaker defines an entrepreneur as someone who leads a business to create a significant impact on society, regardless of the business's size.

What advice does the speaker give to aspiring entrepreneurs?

The speaker advises gaining a solid background in finance, accounting, and management before starting a business unless one possesses extraordinary talent or disruptive ideas.

How does the speaker view the role of global economic trends, like protectionism, on their business?

The speaker acknowledges that while global trends like protectionism are emerging, they haven't yet impacted their business directly but could affect the global economy in the future.