Why 99% of Japanese Businesses Are About to Be Wiped Out?

About this Video

• Video Title: Why 99% of Japanese Businesses Are About to Be Wiped Out?
• Channel: Asian Boss
• Speakers: The transcript doesn't provide speaker names, but it appears to be a single narrator with an interviewee providing data.
• Duration: 21:33

Introduction

This video explores the impending crisis of disappearing Japanese businesses. Despite many being profitable, a significant percentage face closure due to a breakdown in intergenerational business transfer, primarily within family-owned businesses. The video investigates the root causes, government responses, and innovative private sector solutions.

Key Takeaways

• Shrinking and Aging Population: Japan's declining birthrate and aging population are contributing factors, but not the sole cause of the business closures.
• Succession Crisis: The core issue is the failure of intergenerational business transfer. Over 60% of Japanese business owners are over 60, and nearly half lack successors.
• Profitable Businesses Closing: Many businesses closing are profitable and sustainable, highlighting a problem beyond economic downturn.
• Reasons for Succession Failure: Several factors contribute: urbanization leading young people to seek careers elsewhere; lifestyle mismatch with the demanding nature of family businesses; and owners' reluctance to let go due to personal attachment and fear of compromising legacy.
• Government and Private Sector Responses: The Japanese government's support programs have been hampered by bureaucracy. Private sector M&A platforms, using AI to match buyers and sellers, are proving more effective.
• Mukoyoshi (Adult Adoption): This traditional Japanese practice of adult adoption, particularly mukoyoshi (adopting a son-in-law), was used to ensure business succession, but it's insufficient to address the scale of the current crisis.
• Cultural Significance: The crisis extends beyond economics, impacting Japan's craftsmanship, traditions, and cultural identity.