Japan's aging business owners are selling their legacies for cheap to young entrepreneurs who are down to hustle
Japan's aging small-business owners need someone to carry on their work. These entrepreneurs are answering the call.
In Japan, aging business owners are selling their enterprises at a fraction of their original value to young entrepreneurs eager to take the helm. The country's graying population and rural exodus are exacerbating a succession crisis, with many business owners left without heirs. Consequently, they are listing their companies on succession platforms, often at reduced prices.
Kengo Ohama, a 31-year-old café manager, exemplifies this trend. He took over Country Road, a café in Hiroshima, upon learning of the owners' retirement plans. The previous owners wished to find someone passionate to continue their legacy, and Ohama was more than willing to assume the role. He is responsible for running the café daily, managing its operations, and maintaining its ambiance.
Ohama is part of a growing generation stepping up to fill the void left by aging business owners. The Japan Finance Corporation reported that 57.4% of small and midsize businesses surveyed in 2023 expected to close due to succession issues, up from 52.6% in 2019. Platforms like Relay and BATONZ have emerged to bridge this gap, connecting owners with potential successors.
For some business owners, these platforms provide a lifeline in the face of unexpected crises. Akitaka Mitsui, a 67-year-old backpacker hostel owner, found himself in this situation after suffering a stroke in 2022. Unable to continue running his business, Mitsui sought a successor through BATONZ. Kota Fujisawa, a 29-year-old native of Nagano, stepped in to take over Mori to Mizu Backpackers and rename it Local Knot Backpackers.
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