Over the next three years, 55% of entrepreneurs over 55 in Finland plan to give up the main responsibility for their business. This means that more than 7 000 businesses will change ownership due to the ageing of the entrepreneur. It is estimated that almost 50 000 businesses will change hands within the next ten years.
At the request of the Omistajanvaihdosfoorumi, Statistics Finland has studied the annual volumes of changes of ownership of enterprises. According to the survey, nearly 4 000 enterprises are transferred to a new owner every year through a acquisition or a generation-shift. However, the actual number of business transfers is challenging to establish due to the different types of transactions. What is clear, is that more business transfers are needed if viable businesses are to be preserved and even transformed into growth companies.
Business transfer can be a complex process, requiring a wide range of expertise. The situation is usually unique for both buyer and seller and in many cases the change of ownership is a major turning point in life. There is a lot of new information to find out and ask questions about, and you don't always know what to ask and from whom. Guides and other experts specialised in the field of business transfers are the best people to answer all questions.
Many entrepreneurs or those planning to become entrepreneurs want to explore the subject independently before contacting an expert. There is a wealth of good material and information on business transfer available online. The problem is that the information is fragmented and it can be difficult for a buyer or seller considering or in the process of changing ownership to find accurate and up-to-date information.
In addition to information, the change of ownership involves emotions such as uncertainty, abandonment, frustration, excitement and success. The process requires trust, cooperation, negotiation skills, patience and time. Overall, a business ownership change usually takes several months, sometimes even years.
It is impossible for one person to control everything. That's why MicroENTRE is developing a digital platform for business transfers in the VALO - National Centre of Excellence for Ownership Transfers project, where business transfer information is brought together in one place to serve buyers, sellers and experts.
VALO will be a place where the most relevant information on the business transfer will be gathered in an
inspiring and engaging way, accessible to all 24/7.
Read more about the VALO project.
Author:
Laura Veikkola, Project Researcher, MicroENTRE Microentrepreneurship Centre, University of Oulu Kerttu Saalasti Institute
In Kerttu Saalasti Institute's blog we write about the topics of the Institute's research groups, micro entrepreneurship education and the Institute's general topics. The authors are researchers, experts and members of networks.
Our topics are: micro entrenepreneurship, future manufacturing technologies, regional excellence, micro entrepreneurship education