The mutual challenge of business transfers
Each year approximately 700 000 micro companies, those with less than ten employees will face a generation transition, the sale of business or ceasing operations in the European Union area within the next ten years. Success in generational and ownership transfers is a crucial political, economic, and industrial policy issue that affects the continuation of entrepreneurial activities and preservation of jobs in the coming years. A special cause for concern lies in the transfer of micro companies because these entities in particular have limitations in preparations due to lack of time, money, and know-how.
REINO - a proactive stance to business transfers
At the end of 2006 project REINO (Renewal and Innovation to Business Transfer of Micro Companies) was launched to improve the conditions for implementing business transfers of micro companies. The objective is to create a support structure that assists entrepreneurs in carrying out business transfers effectively. During the two-year long project partners in Denmark, Greece, Finland, and Italy will map out and test the implementation of support services in different stages of the business transfer process.
REINO aims to
- Generate lasting solutions to assist micro companies in accomplishing business transfers successfully now and in the future.
- Develop new tools and methods through pilot projects to tackle the specific challenges of business transfers and give advice to entrepreneurs about transfer processes.
- Increase awareness among entrepreneurs and stakeholders of the significance of preparation in business transfer situations; successfully finalised transfer processes may take as long as five years.
- Encourage entrepreneurs to start planning well in advance and to see business transfer as a possibility of renewal and continuity instead of a threat.
- Safeguard viable companies, jobs, services, and priceless know-how through its proactive stance.