TOKYO, Feb 9 (Reuters) - The head of Internet-savvy Softbank Corp sounded an alarm on Tuesday that Japan is at a competitive disadvantage in a global society rapidly leaning towards information-oriented business.
Japan had its own strength during the era of manufacturing society, though it now has virtually no strength in an information-oriented society, which is the very root of its problem,'' said Softbank President Masayoshi Son.
Son, 41, regarded as one of Japan's most charismatic entrepreneurs, said he thinks the nation's economy in the short term is in an ``extremely dangerous'' state.
``Looking at this year alone, there may be some improvement in the latter half, but the problem is that we will have to face it (the economy) remaining in the doldrums in the next four to 10 years,'' Son said.
``In a longer cycle, like two to three decades, however, things may not be that pessimistic,'' he added.
The head of Softbank, known for its aggressive investment in leading Web ventures like Yahoo!, GeoCities Inc and Internet broker E*Trade, said Japan has lagged far behind the United States in a new business phase where information software, or content such as movies and music, has more weight than hardware.
``Japan has also been slow in making efforts to catch up with (the United States) in the field of education, skills or infrastructure. Still, politicians and business leaders are not fully aware of this, which is the biggest problem,'' Son said.
He said Softbank was still in the first phase of its business expansion aimed at achieving a ``digital revolution'' under which society would benefit from the maximum use of computers, especially the Internet.
``To achieve this dream of a digital revolution, we also need to strengthen our financial base,'' he added.
Son made the remarks on the first day of a two-day convention of startups in Japan, which is in its worst recession of the postwar periood, with firms facing a credit crunch resulting from a long-running problem of bad loan-laden domestic banks.
But the outlook is not all black, he said.
``At a time of (economic) crisis, everybody's business strength is weakened, including rivals. If you are wise enough to find a new way of starting business in better conditions, you will have a chance,'' Son said.
His view was also shared by two other prominent entrepreneurs -- Hideo Sawada, head of cut-rate travel agency H.I.S. Ltd and Yasuyuki Nambu, president of Japanese temp agency Pasona Inc.
Son, Sawada and Nambu have recently been dubbed ``the Three Musketeers'' by Japanese media for their success in beating the slump and heavy government restrictions with their business expertise and unique strategies.
Sawada, 47, recently shocked the financial industry by announcing a surprise takeover of a small, loss-making Japanese brokerage. He was also known for his role in setting up Skymark Airlines, the nation's first new airline firm for 35 years.
``I know it's a risky challenge. You may call me a risky manager, but I think the brokerage industry will change... I'm doing this based on a long-term strategy of five to 10 years.''
Sawada said the securities industry needs to change to attract individual investors and thus activate the currently stagnant stock market, which is a must for a recovery of the Japanese economy.
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