Resurgence of Centuries-Old Enterprises: Lessons from Japan’s Economic Powerhouses

The Quiet Revolution of Ancient Enterprises

In the fast-evolving global economic landscape, the spotlight often shines on emerging startups, overshadowing the remarkable resurgence of ancient enterprises. These venerable companies, some with over a century of history, are demonstrating remarkable resilience and innovation, contributing significantly to economic growth. In Japan, centennial companies have seen their market value grow by 2.6 times in the past decade, outpacing overall market growth. This phenomenon underscores the importance of legacy firms in driving economic prosperity.

Market Performance and Financial Growth

Japanese companies with over a century of history have significantly outperformed the broader market. The TOPIX 100 index, which includes many of these centennial firms, saw their market value increase by 157 trillion yen, a 2.3-fold growth, nearly matching the 2.9-fold increase seen in the major companies of the S&P 100 index in the United States. These companies have not only expanded their market value but also enhanced their profitability. Over the past decade, their net profits have grown by 2.5 times, and their revenues have increased by 1.5 times, surpassing the market…