Osaka Prefecture is a prefecture located in the Kinki region on Honshū, the main island of Japan. The capital is the city of Osaka. It is the center of Osaka-Kobe-Kyoto area. Osaka Prefecture was created in 1868, at the beginning of Meiji era. Osaka Prefecture neighbors the prefectures of Hyōgo and Kyoto in the north, Nara in the east and Wakayama in the south. The west is open to Osaka Bay. The Yodo and Yamato Rivers flow through the prefecture. Prior to the construction of Kansai International Airport, Osaka was the smallest prefecture in Japan. The artificial island on which the airport was built added enough area to make it slightly larger than Kagawa prefecture. The gross prefecture product of Osaka for the fiscal year 2004 was ¥38.7 trillion, second after Tokyo with an increase of 0.9% from the previous year. This represented approximately 48% of the Kinki region. The per capita income was ¥3.0 million, seventh in the nation. Overshadowed by such globally renowned electronics giants as Matsushita and Sharp, the other side of Osaka's economy can be characterized by its Small and Medium Enterprises (SMEs) activities. The number of SMEs based in Osaka in 2006 was 330,737, accounting for 99.6% of the total number of businesses in the prefecture. While this proportion is similar to other prefectures (the average nationwide was 99.7%), the manufactured output of the SMEs amounted to 65.4% of the total within the prefecture, a rate significantly higher than Tokyo's 55.5%, or Kanagawa's 38.4%.