# The Enduring Legacy of Japan's Century-Old Enterprises
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Chapter 1: The Rich Heritage of Japan's Oldest Businesses
Japan holds the distinction of having the most century-old businesses globally. In fact, nine out of the ten longest-operating companies in the world originate from Japan. The oldest, Kongō Gumi, a construction firm, was established in 578 AD and has a remarkable 1,443-year history. What enables these Japanese enterprises to endure and thrive through the ages?
The global business landscape is fraught with challenges, and many companies are forced to close their doors each year. The COVID-19 pandemic has exacerbated this crisis, impacting economic activities across various nations. For instance, in 2020, bankruptcy rates surged by 39% in the United States, 33% in the United Kingdom, and significant percentages in other European countries. In this context, it becomes crucial to examine how businesses can not only survive but also flourish over time.
Section 1.1: The Cultural Resilience of Japanese Enterprises
Japan's reputation for having the highest number of century-old businesses might suggest that these companies are hindered by rigid traditionalism. However, this assumption is misguided. While the Japanese value their traditions, they also adapt and evolve, ensuring their competitiveness in the modern market. Notable publicly traded companies such as Yomeishu, Kikkoman, and Takeda Pharmaceuticals boast histories of over 200 years and have consistently remained at the forefront of their industries.
The key to Japan's remarkable longevity in business lies in its distinct "national character." Many of these enduring enterprises are family-owned, with successors inheriting not just the business but also the family's guiding principles. These principles imbue a sense of duty and honor in each generation of owners, fostering resilience in the face of adversity.
Section 1.2: The Legacy of the Kongō Group
As a prime example, the Kongō Group, founded in 578 AD, stands as the oldest surviving business worldwide, having been handed down through over forty generations.
Chapter 2: The Spirit of Craftsmanship and Family Values
The management of family-run businesses often offers employees—many of whom are relatives—a stable career trajectory, a clear vision for the future, and an enhanced sense of fulfillment. These traits are closely aligned with the modern emphasis on corporate culture. The enduring success of Japan's century-old businesses can be attributed to their commitment to the "spirit of the modern craftsperson."
Japanese culture places a high value on aesthetics, and as such, family enterprises are often treated as cherished works of art. This cultural tradition has been preserved through generations. According to the "2018 Family Business White Paper," a staggering 52.9% of the 3,546 listed companies in Japan are family-owned, which play a vital role in the nation's economy and industrial growth. For instance, the Mitsui Group, a globally recognized conglomerate involved in various sectors, has its roots in the Edo period (1603–1867).
The resilience of the Japanese people has not gone unnoticed; anthropologist Ruth Benedict famously described their national character as "the flower and the sword." The Japanese possess a unique blend of appreciation for beauty and a fierce competitive spirit, constantly striving for perfection in their products. This duality is fundamental to the endurance of Japan's century-old family businesses, allowing them to thrive in an ever-changing world.