Small and medium-sized enterprises (SMEs) account for more than 90% of all businesses in Japan and play an important role in job creation in local areas. In Aichi Prefecture, the number of small and medium-sized businesses that have closed or dissolved has exceeded 1,300 for four consecutive years, and about 70% of those businesses' closings have been due to lack of successors. In light of this situation, the Institute of Business Succession Research was established to contribute to the revitalization of small and medium-sized businesses through industry-academia collaboration.
The main issue facing the management of small and medium-sized businesses is the development of successors, an important process which is often left neglected until it is already too late. In many such cases, there is no alternative but to choose M&A with competitors or to shutter the business. To address this issue, we develop cases related to business succession through industry-academia collaboration, support second business startups, and conduct corporate diagnosis.
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Business conditions at the time of closure (N=635)
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Reasons for closing the business (N=617)
The Institute for Business Succession Research, a research team made up of faculty members from the NUCB Business School and staff members from credit unions in Aichi Prefecture, conducts Human Resource Development for Business Succession programs with the aim of promoting succession within families. By supporting the succession of businesses within the family, we aim to strengthen the business foundations of small and medium-sized businesses, ensure the provision of employment in the local area, and encourage tomorrow's leaders to revitalize traditional local industries from a new perspective.
The Nagoya University of Commerce and Business (operated by the Kurimoto Educational Institute) and 15 member banks of the Aichi Shinkin Bank Association established the NUCB Institute of Business Succession Research in 2015. Through its collaborative research initiatives, the Institute implements the Human Resource Development for Business Succession programs in order to enable and support succession within family businesses.