The Korea Local Administration Review

The social economy, including community business is hard to institutionalize just by unilateral support of governments, because it is on the sector which private sector and public sector are mixed. This paper examines the institutionalization of community business in Japan, and the process of how the social economy and social capital are promoted by local governments in the welfare mix era. The success factors of institutionalization in Iwafune are summarized as follows. First, the local government devised plans with experts, and various actors participated to implement the plans. Second, diverse members and organizations in the community could set up cooperative relations, because the local government's core business was to promote network buildings. Third, the community has the ability to propagate the community business, not depending on a government subsidy fully, by established the intermediary organization for community business, certificated the NPO corporation later.