Why are entrepreneurship levels so low in Japan?

•The results reveal low levels of entrepreneurial activities and attitudes in Japan.•Entrepreneurial attitudes and personal attributes are associated with business start-up and new business investment.•Individuals with perceived capabilities are more likely to engage in a business start-up in Japan compared to other countries.•Individuals with entrepreneurial network are more likely to invest in a new business in Japan compared to other countries.

This article explores the characteristics of individuals involved in entrepreneurial activities. Using data provided by the Global Entrepreneurship Monitor (GEM), we examine the factors that motivate individuals to engage in a business start-up and to invest in a new business. The results reveal low levels of entrepreneurial activities and attitudes in Japan. The results also reveal that entrepreneurial attitudes and personal attributes are associated with business start-up and new business investment. We provide evidence that those individuals who have perceived that they possess the knowledge, skill, and experience required to start a new business are more likely to engage in a business start-up in Japan compared to other countries. Moreover, those individuals who are acquainted with other entrepreneurs are more likely to invest in a new business in Japan compared to other countries.