During the last three decades of economic growth in Japan, gaps existing between large and small firms in terms of wages, benefits, etc. have grown smaller and less significant. The amount and quality of human resources available will become more limited after the size of the Japanese population peaks somewhere around the year 2010. Satisfaction expressed by both employers and employees at Japanese SMEs is now better than it was in the past, being accentuated by growing popularity of new management philosophy largely unique to SMEs, i.e., individual-, employee-, partnership-, humanity-oriented business philosophies.