#REBTES Business transfers are an important element of entrepreneurship and regional economic development!
New European comparison calls for business transfers to become a core element of entrepreneurship and regional development policy
Business transfers should not be regarded merely as the final stage of an entrepreneur’s career. Successful transfers preserve viable businesses, employment, expertise and local services. They also provide a route into entrepreneurship and enable companies to grow through acquisitions. A new publication compares SME business transfer ecosystems in six European regions and presents eight recommendations for strengthening them.
The REBTES project, funded by the Interreg Europe programme, has mapped and compared SME business transfer ecosystems in Slovenia, Croatia, Flanders in Belgium, Utrecht in the Netherlands, South Ostrobothnia in Finland and Ivano-Frankivsk in Ukraine.
The comparison examined the level of policy attention given to business transfers, coordination between ecosystem actors, entrepreneur activation, research and monitoring, advisory services, finance, buyer–seller matching, legislation, and culture and attitudes.
According to the mapping, there is no single model for an effective business transfer ecosystem that would suit every region. Nevertheless, the regions face several common challenges. Business transfer planning often starts too late, support pathways are fragmented, and buying an existing business is not yet sufficiently recognised as a route to entrepreneurship, renewal and growth.
Business transfers involving micro and small enterprises present particular challenges. Transactions are often small, financing can be difficult, and local and informal networks frequently play an important role in finding buyers.
“Business transfers are about much more than an individual entrepreneur stepping away from their business. A successful transfer can safeguard jobs, preserve services and expertise that are important to a region, and provide a new entrepreneur with an established foundation for developing the business. Business transfers should therefore be recognised more strongly as part of entrepreneurship, growth and regional development policy,” says Anmari Viljamaa, Project Manager of REBTES.
Regions have relevant expertise, but services need to be better connected and more visible
All the regions included in the comparison have organisations and services that support business transfers. However, the regions differ in how effectively their actors, services and policy measures form a coherent and easily accessible support system.
Strengths identified in the comparison include coordinated business transfer support in Slovenia and South Ostrobothnia, sustained policy attention in Flanders, a broad private advisory market in Utrecht, and research and event-based awareness-raising in Croatia. In Ivano-Frankivsk, the business transfer ecosystem is being actively developed under exceptionally difficult conditions.
Several regions have access to useful data on business transfers, but significant gaps remain in monitoring completed and anticipated transfers.
Ivano-Frankivsk is developing its business transfer ecosystem under exceptionally difficult conditions
In Ivano-Frankivsk, the development of the business transfer ecosystem is taking place in the context of Russia’s full-scale war against Ukraine, which has created additional challenges for businesses and the regional economy. Ensuring business continuity, preserving jobs and maintaining essential services are particularly important in these circumstances.
The REBTES project’s mapping provides an opportunity to assess the regional business transfer ecosystem, identify gaps in existing support and exchange experience with European partners. It also highlights the importance of making business transfers more visible as part of entrepreneurship and regional development policy.
The mapping points to several areas for further development in Ivano-Frankivsk:
- Raising awareness of business transfers. Entrepreneurs need accessible information about the possibilities of transferring ownership, including selling an existing business or acquiring one as a route into entrepreneurship.
- Encouraging early preparation. Business owners should be encouraged to consider succession and transfer options well before they intend to leave their businesses. Early preparation can help maintain business value, identify potential buyers and improve the prospects of a successful transfer.
- Strengthening cooperation between ecosystem actors. Better coordination between business support organisations, professional advisers and other relevant stakeholders can help entrepreneurs access the right information and services at each stage of the process.
- Improving access to advice and financing. Clear guidance on legal, administrative and financial aspects of business transfers can help reduce barriers, particularly for micro and small enterprises.
- Promoting business acquisition as an opportunity. Raising awareness among potential entrepreneurs about acquiring an existing business can support business continuity, preserve local expertise and create opportunities for further growth.
For Ivano-Frankivsk, strengthening the business transfer ecosystem is an opportunity to support the resilience of local enterprises, preserve economic activity and build a more coordinated approach to business succession and continuity.
Eight recommendations for stronger business transfer ecosystems
Although the REBTES mapping is based on a comparison of six European regions, the challenges it identifies are not limited to the countries and regions participating in the project. This is a change affecting the whole of Europe, as European entrepreneurs are ageing alongside the general population.
Effective regional business transfer ecosystems are important throughout Europe. Their role is to help business owners and potential buyers find one another and to provide the advisory services, finance and other support needed during the process.
The eight recommendations form a common development framework that can be applied in different regional and national contexts across Europe.
The REBTES mapping presents eight recommendations:
- Permanent coordination to sustain policy attention, connect actors and guide ecosystem development.
- A clear and coordinated service offering with visible entry points and effective referrals between services.
- Recurring awareness-raising, communication and education that present business acquisition as a route to entrepreneurship and growth. The publication also proposes exploring the establishment of a European Business Transfer Day or Week.
- Shared definitions and indicators for monitoring completed and anticipated business transfers and, where possible, the development of businesses after a transfer.
- High-quality expert advice, with qualified experts supporting the different stages of the process and accountants equipped to raise the issue early and refer entrepreneurs to appropriate services.
- Financing solutions suited to small business transfers, including transactions in which the buyer has limited equity or collateral.
- A range of buyer–seller matching channels, combining digital platforms, professional intermediaries, events and local networks.
- Clearer guidance on the legal, fiscal and administrative requirements associated with different forms of business transfer.
The publication also proposes exploring the establishment of a permanent European coordination function. Its role could include preserving knowledge on business transfers, supporting interregional learning, and advancing joint work on monitoring, research, communication and education.
Stronger business transfer ecosystems help viable SMEs find new owners and continue operating. At the same time, they support employment, business renewal and regional vitality and strengthen regions’ resilience to change.
Read the publication: REBTES | Mapping SME Business Transfer Ecosystems in Europe | Interreg Europe
REBTES – Developing Regional SME Business Transfer Ecosystems is an interregional cooperation project funded by the Interreg Europe programme. It supports the development of SME business transfer ecosystems and the improvement of business transfer policies in six European regions.
More information about the REBTES project:
REBTES – Developing Regional SME Business Transfer Ecosystems | Interreg Europe
Further information and interview requests
Anastasiia Tomyn
Project manager
Department of Investment Policy, Projects,
International Relations, Tourism and City
Promotion Ivano-Frankivsk City Council
Tel. +380 68 620 92 64
Email: uateamrebtes@gmail.com