I hereby promulgate the Law for the Establishment of the Smaller Enterprise Board.
Signed:HIROHITO, Seal of the Emperor
This second day of the seventh month of the twenty-third year of Showa (July 2, 1948)
Prime Minister ASHIDA Hitoshi
LAW FOR THE ESTABLISHMENT OF THE BOARD OF SMALLER ENTERPRISE
(General Purpose)
Article 1. Smaller enterprise is essential to a sound and prosperous Japanese economy. It is considered that small, efficient, independent enterprises will serve as a bulwark against concentrations of economic power and provide opportunity for the industrious to follow the legitimate callings of their choice. Accordingly, the purpose of this Law is to establish conditions which will assist in the development and successful operation of smaller enterprise.
(Board of Smaller Enterprise)
Article 2. Director-General:A Board of Smaller Enterprise, hereinafter referred to as the "Board," shall be established within the Ministry of Commerce and Industry, headed by a Director-General who shall carry out the provisions of this Law.
(Functions)
Article 3. The Board shall, through its Director-General and own staff personnel, exercise the following functions:
a. It shall gather, analyze, and freely disseminate information concerning such matters as procurement and availability of materials and substitutes, production methods, inventory maintenance, merchandising, distribution, salesmanship, shipment, engineering, management, advertising, credit selling, available sources of credit, taxation, accounting, fuel and power utilization, labor relations, government procedures and on all other matters pertaining to efficient business methods and to the development and successful operation of smaller enterprise.
b. Its staff and facilities shall be available for the purpose of examining into and diagnosing the affairs and operations of any small enterprise to which it shall submit its findings and recommendations. The diagnosis shall be made only upon request of the smaller enterprise and the recommendations shall not be binding in any respect.
c. It shall consult with laboratories and research institutions regarding their available facilities and techniques and shall encourage but in no way require the utilization of such facilities and techniques by smaller enterprise.
d. It shall encourage but in no way require new and useful products and processes on the part of small enterprise.
e. It shall hold expositions to display the products and processes of smaller enterprise.
It shall prepare studies of economic conditions affecting smaller enterprise and shall be empowered to express its opinion on all bills affecting smaller enterprise which shall have been into the Diet.
It shall concentrate the cooperation of all other parts of the central and local autonomous Government whose activities affect smaller enterprise.
It shall hold its staff and facilities available to all persons who shall have complaints that some Government action has affected their business in an arbitrary or discriminatory manner, or that some private action restrains their trade or is an unfair method of competition.
In the latter instance, the complainant shall be referred to the Fair Trade Commission.
(Organization)
Article 4. The Board shall be composed of a Secretariat which shall be in charge of administration and personnel, a Promotion Bureau which shall be in charge of the functions set forth in Paragraphs a, e, f, g, h of Article 3 and a Fostering Bureau which shall be in charge of the functions set forth in Paragraphs b, c, d of the same Article.
(Personnel)
Article 5. All functions of the Board shall be performed through its own personnel and the Board shall, among such personnel, employ persons skilled in the efficient operation of enterprise as well as persons of exceptional learning in economic matters. The necessary matters concerning personnel shall be regulated by Cabinet Order.
Supplementary Provisions:
Article 6. This Law shall become effective thirty (30) days after the date of its promulgation.
Article 7. The following amendment shall be made to the Official Regulations governing the Ministry of Commerce and Industry:
In Articles 9, 2, the words, "... matters pertaining to the development of smaller enterprise under the jurisdiction of the Ministry and..." shall be deleted.
Minister of Finance KITAMURA Tokutaro
Minister of Welfare TAKEDA Giichi
Minister of Agriculture and Forestry NAGAE Kazuo
Minister of Commerce and Industry MIZUTANI Chozaburo
Minister of Transportation OKADA Seiichi
Prime Minister ASHIDA Hitoshi