The Site of the First National Bank, Kabutocho, Nihonbashi, Chuo ward

Eiichi Shibusawa: The Father of Japanese Capitalism

Eiichi Shibusawa, a man who dedicated himself to the modernization of Japans business world.

Eiichi Shibusawa: The Father of Japanese Capitalism

(Voice actor) Mr.Akira Daniel Duncan

Akira Daniel Duncan

When Japan was transforming from an era of samurais into a modern nation, Eiichi Shibusawa demonstrated his talents. Eiichi was born on February 13th, 1840, in Chiarai-jima, Hanzawa county, Musashi province (now Chiarai-jima, Fukaya city, Saitama prefecture). His family was a wealthy farmer who organized the area’s sericulture and produced their own rice and vegetables. They weren’t just farmers, as they also dealt with merchants. Eiichi began calculating with an abacus at an early age, and went to Shinshu to make purchases when he was 14, and honed his business skills. This experience became the base of the man Eiichi would later become. However, Eiichi wasn’t all calculations and businesses. His father taught him how to read since he was 5 years old and started studying in a private academy when he was 7. Furthermore, he went to Edo and learned Hokushin-ittoryu (a school of sword art) at Genbu-kan. He started friendships with anti-Tokugawa samurais, called the Imperial loyalists at this time. He was briefly influenced by the anti-Tokugawa ideology, but Eiichi eventually served Yoshinobu Tokugawa. Under Yoshinobu, Eiichi inspected the Expo in Paris and witnessed the progressive European culture. He felt that the ostracization of foreigners that some Japanese had in mind was ridiculous, and thought that they should learn from foreign countries. What Eiichi became interested in was corporations. He felt that national power would not grow without many corporations being founded and competing. After the Tokugawa regime was toppled and a new government was established, Eiichi was told by Yoshinobu to “live as you wish” and Eiichi became independent. And soon enough, he founded a company in Shizuoka in 1869. He intended to live as a private citizen, but since personnel with his economic sense was rare, he was convinced to work in the new government, and Eiichi started working for the Ministry of Finance, where economic policies are planned and promoted. He was involved in establishing the ordinance that served as the basis of the founding of banks, but eventually quit the Ministry and turned to the private sector again and became involved in the founding of several companies. Other than becoming the president of First National Bank, he cooperated to found numerous regional banks. Among the companies he was involved in founding include Tokyo Gas, Oji Paper, Tokyo Marine Fire Insurance, Imperial Hotel, Kirin Brewery, Sapporo Breweries, Chichibu Cement (now Taiheiyo Cement), Keihan Electric Railway, and the Tokyo Stock Exchange, all top companies of Japan. It is said that Eiichi Shibusawa was involved in nearly 500 companies. With the movement that encouraged founding private companies, Japan’s modernization advanced dramatically. Enjoy the story of Eiichi Shibusawa, who led the business world of Japan.      

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