News Profitable businesses in Fukushima shutting down amid successor shortage

Another sad side effect of Japan's shrinking population:

A growing number of companies in Fukushima Prefecture (and not only there) are closing down, despite operating profitably, mainly due to the ageing of their business managers and the absence of suitable successors. According to data from Teikoku Databank's Fukushima branch, of the 871 firms in the prefecture that either ceased operations, suspended activities or were dissolved in the previous year, 34.9% were still profitable at the time of closure. These businesses were forced to shut down not because of financial failure but due to unresolved issues around business succession. Experts caution that such cases are likely to become more common in the future, as Japan's ageing population and declining birth rate contribute to an increasingly severe labour shortage.

The aging of business owners in Fukushima Prefecture is also becoming a bigger problem. According to a 2023 Teikoku Databank survey, the average age of company presidents in the prefecture was 61.3 years old, hitting a record high and topping the nationwide average of 60.7 years old. More than 80% of business owners in Fukushima Prefecture were 50 years old or older, and 4.8% were 80 or older. A nationwide survey conducted last year found that 316 firms in Japan went bankrupt because their owners fell ill or died. A Teikoku Databank official pointed to the need to take prompt action to prepare for unforeseen circumstances.

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