Taiwan's concept of renewing business areas originated from Japan's "community empowerment" policy. Considering how the Japanese government has developed a complete system for community empowerment, representatives from Taiwan's academic circles and industries have visited Japan and learned many valuable lessons. However, there are no studies discussing the origin and content of related policies in Japan, current status of shopping streets, scholars' comments, the "Revision of Regulations Governing the Empowerment of Central Shopping Streets" and the new policy of "Renewing Businesses in Central Shopping Streets" (2009). The purpose of this study is to clarify the definition of "shopping streets," their status, related policies, and other important topics by examining small/medium retailers in Japan, followed by discussing the development of business policies for these small/medium retailers, including their current status after new policies were introduced, related issues, scholars' comments, potential changes in policies, and the "Regulations Governing the Empowerment of Central Shopping Streets." Lastly, business areas in Taiwan are compared to those in Japan in order for us to learn from the latter.