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Abstract An economic solution for reversing Japan's financial challenges is entrepreneurship. New ventures are emerging outside the traditional Japanese management systems of lifetime employment, seniority systems, enterprise unions, and the Japanese business culture, which stresses a group‐oriented, riskaverse orientation. Governmental changes are slowly improving the climate for entrepreneurship. Using a case‐study approach, this article follows the development and strategic challenges facing the company Digimom (or “Digital Mom”) Workers, and profiles the historic and cultural challenges facing a female entrepreneur in Japan. Financial reports as well as a profile of the competitive environment are included. Implications and lessons learned follow the case analysis. © 2009 Wiley Periodicals, Inc.
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