Not just one company! There are many thousands of years old businesses still existing in the land of the Rising Sun that few people know about.
Japan is a developed country both scientifically and economically. But for some reason, when looking at this country, people feel more nostalgic.
Because their population is aging? Or because of a culture that somewhat values old values? No one is sure! Just know that if you ask now where the oldest company in human history is located, the answer is in the land of the Rising Sun with the name Kongō Gumi .
Kongō Gumi is a privately owned Japanese construction company that currently holds the title of longest-running company in human history.
Kongō Gumi’s staff.
The company was founded in 578 in Osaka, and operated since then until it was acquired by Takamatsu in 2006. That is to say, Kongō Gumi’s time as a private company is up. up to 1428 years.
The founder of this company is – paradoxically – not Japanese. Crown Prince Shōtoku then invited a group of civil engineers from Baekje (present-day Korea) to build Shitennō-ji – the first and oldest temple in Japan. However, one of the group decided to set up his own business, and from there Kongō Gumi was born.
Shitennō-ji Temple – the first temple in Japan.
In the centuries that followed, Kongō Gumi “contracted” many constructions. Even the Osaka Castle 1000 years later was also undertaken by Kongō Gumi.
Before it was acquired by construction giant Takamatsu, the company still employed 100 employees and generated 7.5 billion yen in annual sales. But in the end, financial and liquidity problems caused Takamatsu to swallow the traditionally rich company.
Since December 2006, Kongō Gumi has operated as a subsidiary of Takamatsu.
You know, the oldest hotel still in operation does not belong to any European country, but is still Japan. That is Nisiyama Onsen Keiunkan, a hotel-hot spring in Yamanashi, established in 705.
The second oldest hotel also belongs to Japan – another hotel – hot spring named Hoshi Ryuokan, established in 718.
Inside Nisiyama Onsen Keiunkan – the oldest hotel in Japan and the world.
And it’s not just these two oldest hotels. In fact, Japan is also home to many ancient businesses. Like Sudo Honke – the oldest sake brewing company – founded in 1141; Yamanashi Prefecture – a company that manufactures monks’ supplies, founded in 1024; Ichimojiya Wasuke – Japan’s oldest confectionery company, founded in 1000…
Perhaps it is not surprising that a country with a long history of owning such companies. Most are family businesses . Kongō Gumi itself is also a family company, with a 3 meter long line of inheritance (and that stopped in the 17th century).
However, the puzzling thing here is how can these companies last for a thousand years – a very… absurd number compared to most other businesses in the world?
According to David Weinstein – a professor of Japanese economics at Columbia University (USA), the main reason is that these are all family companies. It should be known that the Japanese maintain a culture called “firstborn right” – the eldest son will inherit all the family’s assets. Meaning, the entire company will be transferred to a single person, so there will be no sharing of the year and the seven.
Japanese family companies are passed down to a single heir.
Even in the 20th century, when the “firstborn” culture had gradually disappeared, private companies and businesses themselves still tended to pass everything on to an heir.
But not only that. The problem is that this heir can be an adopted child, or a person trusted enough to maintain the family’s career, but not necessarily a child in the family. According to some studies, companies inherited by “foreigners” often operate much more efficiently, and because of that, they can stand for thousands of years.
Furthermore, in the presence of outsiders, the business can even evolve in a good direction. One of the most successful examples of this culture is Nintendo – which started as a card company, then restructured to become one of the video game industry icons on a global scale.
Nintendo used to be a family company too, and you know what they do, right?
There is also Sumitomo and Mitsui – both centuries old. They combined to form SMBC – the second largest multinational bank in Japan.