Japan's small firms, many of which are “mom-and-pop” operations, are dying out as their aging owners struggle to find successors, according to Reuters.
Prime Minister Shinzo Abe has targeted more business startups as a crucial part of regenerating economic activity, but the impact has been minimal so far, with the number of small firms that are closing their doors at a near-record high.
For instance, Takayasu Watanabe, 72, has closed a chalk-making business in Nagoya that his family had operated for more than 80 years. He sold technology, equipment and trademark rights to a South Korean company last year.
"My physical condition has been deteriorating. I was unable to find a successor and business performance was not good," Watanabe said, adding that none of his three daughters wanted to take over the firm.
The Bank of Japan’s Tankan business survey showed on Monday that small manufacturers remained pessimistic in September as the economy continues to flounder more than three years after the prime minister pledged to reboot it with reflationary policies which markets have dubbed “Abenomics.” (Source: Reuters)
Articles are chosen for summary in this Market Intelligence blog based on newsworthiness in conjunction with The Infinite Loop themes. Any opinions and views expressed in the articles are generally those of the underlying author from the source listed, are not necessarily current as of the date of this blog, may change as market or other conditions change, and may differ from views expressed by Ivy Investment Management Company and its associates or affiliates. Actual investments or investment decisions made by Ivy Investment Management Company and its affiliates will not necessarily reflect the views expressed in the articles. These articles are distributed for educational purposes only and are not investment advice or a recommendation to purchase, sell or hold any specific security mentioned in the article or to engage in any investment strategy. Investment decisions should always be made based on each investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Securities discussed may not be suitable for all investors.