KAZUNARI TAGUCHI

 

CEO, Bordless Japan. FUKUOKA.

building a social network of impact.

could you tell us about the current scale of Borderless Japan — the number of businesses you operate, the number of countries you have expanded into, the composition of the team across the platform as a whole, and your own role and tenure?

Borderless Japan runs forty-five social enterprises across fifteen countries, with about 1,500 members addressing various social issues. Since founding the organization in 2007, I have served as its representative — deliberately avoiding the title “founder.” My focus is not on managing each business individually but on fostering environments and systems that encourage the continuous creation of new businesses and support the leaders behind them. Our goal isn’t to grow a single company large but to cultivate an ecosystem where new social ventures are constantly emerging.

could you explain the structure of Borderless Japan as a platform — how social entrepreneurs operate within it, what is owned individually and what is shared, and how the Pay it Forward / mutual support mechanism actually functions in practice?

The organization functions somewhat differently from a typical corporate group. We are developing an “ecosystem of social entrepreneurs,” where each business has its own representative and management duties. Shared functions like human resources, public relations, finance, legal affairs, and information security support all the businesses, allowing each to focus on tackling social challenges. Moreover, instead of distributing profits to shareholders, we reinvest them into creating new businesses, a process we call “Pay it Forward.” In this cycle, early challengers help support future ones, and these newcomers, in turn, help others. This ongoing cycle increases the number of people committed to solving social issues.

what was the original vision in 2007? what were you trying to build? and how has that vision changed over the roughly twenty years since?

What has not changed since the founding is the idea of “solving social challenges through business.” At the time, it was generally thought that solving social challenges was the role of government and NPOs. However, we believed that social challenges should be solved through the power of business, and we set out to build businesses. Over the past nearly twenty years, our approach has evolved. At first, we focused on “creating businesses ourselves that solve social challenges.” Later, we realized that a single company cannot solve social challenges fast enough, and we began to focus on “creating a mechanism through which social entrepreneurs are continually born.” That is why we have worked on initiatives such as our Academy, creating environments in which many people can take on the challenge of social entrepreneurship. And now, we are entering the next phase.

In recent years, there has been a growth in programmes and support initiatives aimed at developing social entrepreneurs, making “becoming a social entrepreneur” more achievable than ever before. However, addressing social issues requires more than just entrepreneurs. There is a significant shortage of business development talent capable of conceiving, launching, and expanding enterprises, as well as individuals who can drive social solutions across corporate, government, and NPO sectors. That is why we strive for “a society where anyone can become a social business owner.” Our goal is to increase the number of people capable of creating businesses that tackle social challenges, regardless of whether they start their own companies. This approach continually fosters new social businesses, shaping an ecosystem that nurtures them. Our challenge is to create businesses, grow the number of entrepreneurs, and sustain the emergence of societally impactful enterprises—a cycle we envision for the next twenty years.

your company  began as a real estate business and later developed into a share-house business where japanese and non-japanese people lived together. the original model itself can be considered a form of civic participation. from that first attempt, what did you learn or come to realise about how people become involved with one another, and how they come to take an interest in social challenges or develop a sense of personal ownership of them?

The key lesson is that change happens through relationships, not just knowledge. While awareness about foreigners often remains limited despite news or statistics, living together, forming friendships, and understanding each other’s lives turn a “social problem” into a “personal matter.” I realized that genuine concern for social issues and a feeling of personal responsibility arise more from building connections with people than from simply receiving information.

how would you describe your  core engagement model ? many operators relate to their customers through services, products, or memberships. borderless japan relates to people through participation in business. could you explain in your own words what that specifically means?

We see our customers not just as consumers but as active participants in addressing social issues. For instance, those who select renewable energy are not merely purchasing electricity; they are helping to create a sustainable energy future. Similarly, consumers of fair-trade products are not just buying items—they’re supporting mechanisms that sustain producers’ livelihoods. Our goal is not simply to sell products or services, but to offer opportunities for people to engage in solving social challenges.

on your platform, participants can include social entrepreneurs, employees, customers, beneficiaries, partners, and supporters who contribute via Pay it Forward, among others. What are your thoughts on the different ways each stakeholder engages with the platform?

We do not distinctly categorize entrepreneurs, employees, customers, beneficiaries, and partners. Instead, we see them as collaborators, each contributing from different roles to achieve a shared goal of addressing social challenges. Some start businesses, while others support them as employees. Customers who select certain products or services also play a crucial role in advancing solutions. Additionally, partners like companies, governments, and NPOs collaborate on tackling these issues, each leveraging their unique strengths.

Some individuals participate through a mechanism called “Borderless Ally.” This community of supporters makes regular monthly contributions to help launch new social businesses and support social entrepreneurs’ challenges. They are more than donors; they act as fellows who, alongside us, help realize our vision for society. We value the willingness to “want to make society better” over the role someone plays. Whether starting companies, working, supporting, purchasing, or collaborating, anyone can become a catalyst for tackling social challenges. Our hope is that Borderless Japan serves as a platform connecting that commitment to tangible action.

In your experience, what is the difference between engagement through social business and engagement through NGO volunteer activities, government programs, or philanthropy? What advantages does the business mechanism have that other forms cannot?

NGOs and volunteer activities are extremely important for society. At the same time, social business has its own distinctive strength. It is that people can participate within their daily lives. In Japan, donations and volunteering are still special actions, but shopping and working are everyday actions. Social business can connect those everyday choices themselves to solutions to social challenges. As a result, more people can participate and continue participating for longer.

how many individuals are currently part of your ecosystem across fourteen countries, including entrepreneurs, employees, customers, or beneficiaries?

Across the group, roughly 1,500 members actively participate. When including customers and beneficiaries, the total reaches hundreds of thousands. But our emphasis isn’t solely on these figures (metrics). We focus on providing each person with opportunities to engage in societal betterment. Our businesses aim to create more chances for individuals to feel empowered and involved in making a difference, rather than viewing social issues as problems for “someone else” to resolve.

how has the platform developed in the last five years? what do you believe contributed to that growth?

Over the past five years, the number of businesses and countries we operate in has remained relatively steady. Instead, we are now focusing on laying the groundwork for the platform’s future growth. Our efforts have particularly targeted recruiting new graduates and professionals with specialized skills. For social entrepreneurs to successfully launch, grow sustainably, and connect to broader social impact, fellows with diverse expertise are essential. Previously, our focus was on “increasing the number of social entrepreneurs.” Now, we are also dedicated to “growing the number of individuals who build and sustain businesses.” We aim to foster an environment where not only entrepreneurs but also experts in business development, marketing, technology, and organizational design can help solve social issues. This shift is driven by an increase in people choosing careers dedicated to addressing social challenges.

Another key development is the recognition that social and economic goals are increasingly seen as interconnected rather than mutually exclusive. We are still developing our platform. Our goal is to create an ecosystem where social entrepreneurs and diverse talents come together to tackle social challenges, and we see ourselves as being midway through this evolution.

each business within Borderless Japan must be economically sustainable while also generating social impact. How do you balance these two pressures? and when the two are at odds, what kinds of effects arise?

We do not view sociality and profitability as mutually exclusive. Instead, we believe a truly excellent social business aligns both towards the same goal. Profit is not the ultimate aim, but it is essential for sustaining efforts to address social issues. We often say, “profit is not the destination but the fuel.” When social and financial interests conflict significantly, we reassess the business model. The more social challenges are addressed, the more the business can grow. Achieving this balance, we believe, is the core of what defines a social business.

outside your  platform, are there formal partnerships with government agencies, NGOs, educational institutions, or companies? How are these structured, and what do they make possible?

Yes, there are many partnerships. We collaborate with various organizations, including government, companies, universities, international organizations, and NPOs.

For example, in international cooperation, we partner with JICA to develop social entrepreneurs and address social issues in developing countries. In education, we work with Waseda University, Ritsumeikan University, and Ritsumeikan Asia Pacific University to nurture the next generation of social entrepreneurs and changemakers. Our collaborations with local governments are also growing each year, including Fukuoka City, Tokyo, and Sendai City. Together, we support entrepreneurs, tackle local challenges, build community networks, and promote regional revitalization. However, what matters most to us is not the type of organization—whether a government agency, company, university, or NPO—but whether they share the goal of solving social issues. Complex social problems cannot be solved by a single entity. Governments bring systems and public resources; companies contribute business-building power; universities offer knowledge and talent; civil society provides on-the-ground insights and networks. By combining these strengths, we believe we can create social impacts that no one sector could achieve alone. We see Borderless Japan’s role as connecting sectors and fostering the environment where new solutions can emerge, rather than taking everything on ourselves.

which types of social challenges do you believe inspire the most engagement through your model—such as poverty, supporting the socially vulnerable, multicultural coexistence, environmental concerns, education, and others? conversely, are there topics where you find it difficult to generate interest?

Recently, many topics like environmental concerns, climate change, multiculturalism, poverty, and education have gained attention. In our experience, people tend to react more to their personal contact with these issues rather than the issues themselves. For instance, interest in environmental problems spikes when linked to the future of children. Similarly, with poverty, action is often triggered when people see the life story of a specific individual. Conversely, it’s difficult to engage with issues so vast that personal connections are hard to establish. That’s why we focus not only on highlighting challenges but also on creating personal connections.

what do your social entrepreneurs consider the most valuable aspect of being part of borderless japan compared to starting their businesses independently — whether it’s access to capital, the platform, networks, philosophy, the freedom to pursue their mission, or another benefit?

Many entrepreneurs cite “not being alone” as a key benefit. Social entrepreneurship is a lonely challenge. But at Borderless, many entrepreneurs face social challenges in the same way. There are fellows with whom one can share both successes and failures. And there is an environment in which one can concentrate on solving social challenges, rather than facing the expectations of shareholders seeking short-term profit. This is said to be of great value.

what is the retention rate of social entrepreneurs? when entrepreneurs leave, what are the reasons? (if you could insert the number better)

What matters more than the exact number is understanding why people continue to take on the challenge. Many entrepreneurs at Borderless are driven by social issues they personally want to address, which motivates their efforts in ways that differ from typical job changes. Conversely, some individuals choose to leave. The reasons differ but often include a desire to pursue a new path independently or to approach social challenges in a new way. We see this as a positive form of graduation.

how do you attract new entrepreneurs and team members? this  is very demanding work — what types of people seek it out, and which ones succeed there?

We do not carry out any formal recruitment processes. Instead, individuals with a strong sense of social discomfort or awareness tend to find each other naturally. Those who succeed share not only ideals but also the ability to act on them. They do more than just discuss social issues; they create solutions and follow through until completion. It takes both the desire to change society and the ability to implement ideals  into reality. Those who possess both qualities are the ones who succeed.

how does digital engagement — the platform, internal networks, communication across fourteen countries — relate to the hands-on, physical activities each business carries out in its local market? what can each of these forms do that the other cannot?

We believe both are essential. Digital platforms enable the sharing of knowledge and experiences globally. However, many social challenges are localized and require on-the-ground understanding. To effectively address these issues, direct contact with fieldwork is crucial. While digital tools help speed up learning and collaboration, practical experience remains vital. These approaches are not substitutes but are complementary.

how do you measure engagement and impact across the group as a whole? And what indicators do you place the most importance on internally?

Indicators vary across businesses, but our shared focus is on measuring “progress toward solving the social challenge.” While sales and profits matter, they don’t suffice alone. We evaluate metrics such as the number of jobs created, CO2 reduction, and educational opportunities provided, specific to each business’s challenge. Our primary goal is social impact, not just economic outcomes.

the term “borderless” has multiple meanings — borders between countries, citizens and foreigners, business and social roles, and the roles of platform participants. Among these, which border do you think is the most crucial to cross and unify? Conversely, which one is the hardest to break down?

We do not prioritize any particular border—whether it’s between countries, races, cultures, business and social contributions, supporters and those supported, or the individual and society. Many social issues, we believe, stem from divisions created by these various borders. Our goal is not to erase any specific border but to gradually diminish the divisions between people. Ultimately, this leads us to the idea of world peace. While many envision peace as the absence of war, we see it as a state where no one is left behind, and divisions caused by conflict or distrust are no longer present.

over eighteen years, what decisions or changes have had the greatest impact on the business model?

The current form has developed through numerous decisions made in response to social challenges and organizational growth at each stage. Since around 2023, we’ve clarified our direction: focusing not just on individual businesses but on the entire group to address social issues. Historically, at Borderless, each social entrepreneur started and grew their own independent business. However, social challenges are becoming more complex and cannot be solved by a single entity. Issues like poverty, education, the environment, and regional revitalization are interconnected. As a result, we now aim to succeed collectively by sharing knowledge, talent, and networks across the group to create greater social impact. This is just the beginning of our journey. Transitioning from an organization of social entrepreneurs to an ecosystem for solving social problems marks a significant and important turning point.

looking back, if you could do it over again, what would you change? Or if there is something you learned about engagement through early failures, please tell us.

Our history emphasizes ongoing iteration and experimentation rather than executing a fixed plan. As societal issues evolve, there’s rarely a single ‘right answer.’ Instead, we develop hypotheses, face challenges, and make adjustments when things don’t go as expected. These experiences have shaped the current form of Borderless Japan. Many ventures and initiatives failed along the way, but we don’t view these as failures. Instead, they have led to new challenges and helped us improve our platform. Over the past eighteen years, I’ve learned that there’s no one-size-fits-all solution to social problems. What matters most is the willingness to keep learning, embrace challenges, and engage in trial and error—ideally, with others.

if you could name one thing about civic participation or social business that your own experience has overturned or led you to reconsider, what would it be?

I believe that what changes society is not a handful of heroes but the participation of many people. Creating a mechanism through which anyone can participate. That, I believe, is what leads to sustainable social change.

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KAZUNARI TAGUCHI

 

CEO, Bordless Japan. FUKUOKA.

building a social network of impact.

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