Why Does Japan Have the World’s Oldest Companies? The Secrets of Longevity

Japan is home to over 30,000 companies that have been in business for more than 100 years, 3,000 companies that have lasted over 200 years, and even a few that have survived for over 1,000 years. Why do so many long-lasting businesses exist in Japan? Let’s explore the secrets behind their longevity.

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1. The World’s Oldest Company: Kongō Gumi

The oldest known company in the world is Kongō Gumi, a Japanese construction company founded in 578 AD. It specialized in building Buddhist temples and has survived for over 1,400 years due to its skilled craftsmanship, family business structure, and continuous demand for temple construction in Japan.

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2. Why Do Japanese Companies Last So Long?

(1) Family Business Culture and Succession System

• Many Japanese companies operate as “family businesses” and pass leadership not only to blood relatives but also to adopted heirs who are capable of running the business.
• This system ensures business continuity across generations.

(2) “Sanpō Yoshi” Business Philosophy

• The “Sanpō Yoshi” principle of Omi merchants—”Good for the seller, good for the buyer, and good for society”—has been a foundation of long-lasting businesses.
• Instead of chasing short-term profits, Japanese businesses emphasize trust and long-term relationships with customers and communities.

(3) Influence of Shinto and Buddhism

• Japanese culture emphasizes respect for ancestors and gods, reinforcing a sense of duty to maintain family businesses.
• Many long-standing companies are closely linked with temples and shrines, preserving cultural traditions and their reputations.

(4) Adaptability to Change

• Many long-lasting companies evolve with the times to stay relevant.
• Example: Traditional Kyoto textile companies collaborate with fashion brands to modernize their products.

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3. Comparison: Japan vs. Western Businesses

	Japan	Western Countries
Average Company Lifespan	Over 30 years	10-20 years
Management Style	Long-term vision, multi-generational	Short-term profit focus, frequent M&As
Social Role	Community-centered	Maximizing shareholder value
Succession Method	Family, adoption, external recruitment	Frequent CEO changes

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4. Famous Long-Lasting Companies

• Kongō Gumi (578 AD) – Oldest construction company, specializes in temples
• Keiunkan Inn (705 AD) – Oldest hotel in the world
• Gekkeikan (1637 AD) – Traditional sake brewery
• Toraya (1600s AD) – Traditional Japanese sweets (yokan) maker
• Isetan (1673 AD) – Historic department store

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5. Conclusion: The Secrets of Longevity

1. Strong succession planning (choosing the best leader, not just blood relatives)
2. Customer trust and long-term vision (prioritizing relationships over short-term profits)
3. Balance between tradition and innovation
4. Reputation and social responsibility

These elements explain why Japan is home to the world’s oldest companies.