The present paper describes the patterns of entry and post‐entry growth in the Japanese manufacturing sector over the 2001–2007 period, pointing to similarities and differences with other countries. The paper also presents a detailed characterization of start‐up dynamics at a more detailed (two‐digit) sectoral level within the manufacturing sector. The analysis shows that in Japan the entry and growth of start‐ups contribute relatively little to net job creation, as compared to other countries. The main reasons are a particularly low start‐up rate and a growth rate of surviving new businesses that is among the lowest in the sample of countries analysed.