Since the opening of the domestic distribution service market in 1996, small-sized distribution businesses and conventional market have experienced a period of prolonged decline due to a decrease in the number of customers and a drop in profitability. Under such circumstances, business districts in the old downtown areas of cities nationwide have come to lose their capacity for self-sufficiency, which has in turn led to the disappearance of characteristics unique to local areas, along with the "hollowing out"
phenomenon. Recognizing the need to cope with this situation, the government enacted a law intended to provide support for those suffering from i ts e ffects. However, t he t arget of t he l aw i s confined to conventional markets and commercial arcades, and thus it has not gone very far in terms of the effects on the economy of old downtown areas. This study attempts to suggest a model for the comprehensive invigoration of local areas based on the systematic development and management of local commercial districts.
As such, it is necessary for the government and local administrative units to push ahead firmly with systematic efforts to invigorate local commercial districts and protect small-sized business. Those in charge of managing local commercial districts, in particular, should do their best to foster onditions that are favorable to the establishment of an organizational structure capable of assisting small-sized businesses in building up their competitiveness.