Interviewed 118 Companies: Business Succession Comes 'Suddenly' - Connect's 1st Anniversary Special Report

Kokopelli Inc. (Chiyoda-ku, Tokyo, CEO: Shigeru Kondo), which operates the web media 'Connect' for small and medium-sized enterprises (SMEs), will release a three-part reality report based on interviews with 118 companies nationwide to commemorate its first anniversary in March 2026. The second installment's theme is 'Business Succession.' It has become clear that business succession, which is often thought to be a gradual process of preparing and handing over, is 'sudden' for many business owners. We will report on three succession patterns observed through our interviews.

Survey Overview Survey Name: Connect 1st Anniversary Special Report 'The Reality of Regional SMEs' Vol. 2 Survey Period: March 2025 - March 2026 Target: 118 SME owners and managers nationwide (primarily Big Advance member companies) Survey Method: In-person and online individual interviews (60-90 minutes per company) Industries: Diverse, including food manufacturing, manufacturing, retail, care/welfare, food service, IT, shipbuilding-related, etc.

The 'True Face' of Business Succession - 3 Patterns

Pattern ①: 'Sudden Day' Type - Unwillingly became representative due to parent's sudden illness 'With deficits, debts, and various issues, my father suddenly collapsed. I didn't know what to do. I was a complete novice.' (Noodle Manufacturer - Representative) The current representative of a noodle manufacturing company, founded over 30 years ago, was forced to take over when his father suddenly collapsed while he was working in sales at another company. He inherited a deficit, debt, and a state of complete unfamiliarity. He had to handle everything from scratch. 'Sudden Day' successions due to sudden illness or death were observed in multiple companies. The haste and confusion immediately after taking over were common to all cases.

Pattern ②: 'Realized I Had Inherited It' Type - Pushed by circumstances to return home, with zero preparation as a manager 'I didn't want to, you know. But I could always just run away, which I can say now.' (Bag Manufacturing - Representative) The representative of a bag manufacturing company returned to his hometown for 'half caregiving' despite his dream of becoming a chef. Upon returning, he established the manufacturing line himself and, spurred by the COVID-19 pandemic, found new opportunities by integrating with different industries. His words, 'I don't want to say it happened because of Corona. I want the company to be one that changed thanks to Corona,' showed a business owner who created meaning from a reluctant return home. 'My father also seemed unsure whether to end the business with his generation. I didn't study with the assumption of taking over, nor did I join my previous company with the intention of quitting.' (Plastic Manufacturing - Representative) In a certain manufacturing company, the succession progressed ambiguously with the owner's return home, as the predecessor himself seemed undecided about continuing the business. A commonality observed through interviews was that the premise of 'We want you to take over' or 'You might take over someday' was often not explicitly stated between parent and child.

Pattern ③: 'Calculated Return' Type - Took over after gaining skills (Good Example) 'I thought you needed strengths. Business is like multiplication, and I considered what I could do if I returned to this work, so I decided to take over after acquiring expertise in accounting.' (Butcher Shop - Representative) The current representative of a butcher shop specializing in Wagyu beef returned to his hometown after accumulating five years of experience as a certified public accountant at an auditing firm. With the idea that 'Accounting is a common language understood by all companies. You can see best practices from various companies,' he intentionally built his 'axis of multiplication' before approaching the succession. What's noteworthy is that among the 118 companies interviewed, extremely few business owners actively planned and moved forward with 'what to learn before taking over.' Even with the assumption of 'I might take over,' only a handful were specifically prepared. This is where the reality of business succession lies.

From the Connect Editorial Department During interviews, when we asked, 'Did you originally intend to take over?', we often received the answer, 'I didn't intend to.' The assumption that business succession is 'something to prepare for' became increasingly shaken as we conducted more interviews. On the other hand, the fact remains that these business owners are still running their companies today. We, the editorial department, believe that their experiences—finding their own meaning and moving forward step by step during a succession that began unexpectedly—are the greatest hints for business owners in similar situations. Furthermore, for business owners who 'took over after gaining skills,' their careers often involved accumulating experience as sales professionals rather than studying management. This is particularly true for smaller businesses where the owner often continues to be the primary external contact. The 'ability to connect externally,' honed through sales experience, may be directly translating into the power to lead the company. We will continue to share the realities of regional SMEs through this series of reports.

Report List Vol. 1: 'Labor Shortages Were Not Just About 'Not Hiring'' - The Three Realities of Labor Shortages Seen in Interviews with 118 Companies Nationwide Vol. 2: 'Business Succession Comes Suddenly' - The Reality of Unprepared Successions Seen in Interviews with 118 Companies Nationwide (This Release)

About Connect 'Connect' is a web media for SMEs operated by Kokopelli Inc. Celebrating its first anniversary in March 2026, it has conducted interviews with 118 SME owners and managers nationwide. Under the theme of 'Encounters and Connections,' it delivers the real voices of regional SMEs. In addition to interview articles focusing on Big Advance member companies, it also offers newsletters and social media. Learn More About Connect Name: Kokopelli Inc. Location: 11F Kioicho Building, 3-12 Kioicho, Chiyoda-ku, Tokyo Representative: Shigeru Kondo, Representative Director & CEO Established: June 2007 Business Description: Business platform business URL: https://www.kokopelli-inc.com/ Main Service: Management support platform for SMEs 'Big Advance' https://bigadvance.jp/