The world's oldest continuously operating family business ended
its impressive run last year. Japanese temple builder Kongo
Gumi, in operation under the founders' descendants since 578,
succumbed to excess debt and an unfavorable business climate in
2006.
How do you make a family business last for 14 centuries? Kongo
Gumi's case suggests that it's a good idea to operate in a stable
industry. Few industries could be less flighty than Buddhist temple
construction. The belief system has survived for thousands of years
and has many millions of adherents. With this firm foundation,
Kongo had survived some tumultuous times, notably the 19th century
Meiji restoration when it lost government subsidies and began
building commercial buildings for the first time. But temple
construction had until recently been a reliable mainstay,
contributing 80% of Kongo Gumi's $67.6 million in 2004
revenues....
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