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Long-lived Japanese businesses

There’s something strange about Japanese business culture: the country is home to some forty per cent of all the world’s centenarian businesses, and has several that are over a thousand years old. (Perhaps the oldest, Kongō Gumi, went into liquidation in 2006 after over 1,400 years; at the helm was the 50th generation of the founding family.)

This New York Times article looks at long-lived Japanese businesses, particularly focusing on a charming mochi seller, and examines what makes them so extraordinarily resilient.

“If you look at the economics textbooks, enterprises are supposed to be maximizing profits, scaling up their size, market share and growth rate. But these companies’ operating principles are completely different,” said Kenji Matsuoka, a professor emeritus of business at Ryukoku University in Kyoto.

“Their No. 1 priority is carrying on,” he added. “Each generation is like a runner in a relay race. What’s important is passing the baton.”