Sporadic internet shutdowns, new financial headaches and occasional pressure from security forces have hindered – but not yet dampened – their passion to succeed in the troubled country.
Linklusion founder Hidenori Kuroyanagi is one of them.
In 2015, he established Linklusion as a cloud service for microfinance operators mainly targeting the poor.
Four years later, he began a delivery service for small retailers in rural areas.
“Delivering food and daily necessities safely is valuable, especially during these turbulent times,” Kuroyanagi said.
Kuroyanagi began the service after he learned that small businesses owned by women had difficulties sourcing products in rural areas.
His company stocks about 300 popular items at warehouses and makes weekly deliveries.
Three warehouses are on the outskirts of Yangon and employ 70 workers.
Kuroyanagi hopes to connect delivery networks in rural areas with finance, and build a network to deliver information and services in the future.
On Feb 1, Myanmar’s military toppled the administration led by civilian leader Aung San Suu Kyi’s National League for Democracy, citing “electoral fraud”.
Kuroyanagi learned about the situation through messages from staff and friends that morning.
By 7am, core staff gathered in the office next to Koyanagi’s apartment, backing up data on the cloud to brace for a possible internet shutdown.
They also notified local staff to suspend deliveries to ensure their safety.
The company resumed delivery service a week later, but security forces started firing on protesters in March, forcing the company to shutter all locations during April as security forces began setting up checkpoints at highways.
“The security forces randomly question people so no one wanted to risk going into rural areas,” Kuroyanagi said.
Meanwhile, demand for delivery services continues to grow.
As of late November, the number of shipping addresses hit 1,100 – up from about 800 before the power grab.
The increase has largely been driven by small retailers who have to purchase products far from their base, as normal supply routes to nearby markets have been disrupted.
As farmers start to run out of cash amid a worsening economy, Kuroyanagi said he wants to “support small retailers” during these difficult times.
In order to establish more logistics centres, Kuroyanag began raising funds in November, eventually raking in about ¥100 million.
Although some institutional investors say Myanmar’s risk is too high, a few retail investors and businesses have shown interest, he said.
Tomohiro Yamaura, 33, is another Japanese entrepreneur who decided to remain in Myanmar.
He is president of Finalsec, a company that provides online English lessons.
Yamaura serves mostly people of Generation Z in urban areas, who grew up after the country shifted to civilian rule in 2011.
His company teaches English to university students and young adults through virtual one-on-one meetings.
Teachers are also young generation talented in language.
The company had used Facebook in the classes but after the military takeover, the social media platform was blocked by authorities and hindered by nightly internet shutdowns that lasted for two and a half months.
The company had 860 students in January, but the numbers fell by nearly 70% to 280 for the next three months.
“With no prospects, both teachers and students were pessimistic about the future,” Yamaura said.
But he decided to plod on “because I thought I can’t easily give up the business with so many people involved”.
Yamaura has seen some positive changes 10 months after the military took power.
Although universities have remained closed and the situation has remained tough for young people, “many are beginning to think they have to brush up their skills for the future”, he said.
Finalsec had about 1,500 students in December – up more than 70% compared with before the military seized power.
Yamaura thinks it is because many young people are hoping to learn a foreign language to increase their chances of working abroad.
The company hired new management staff in September “to nurture personnel who will lead the company’s future in 10 to 20 years’ time”, Yamaura said.
He plans to leave actual operations to local staff in the future.
Nevertheless, military rule continues and there is no sign of change.
“As it is becoming increasingly difficult for big companies to do business in Myanmar, Japanese entrepreneurs are expected to fill in for them,” said Growth Myanmar president Keisuke Haga, one of the first entrepreneurs to launch a Japanese business in the country, providing chauffeured rental cars for expats since 2013.