Supporting Successful Business Transfer in
Europe: Transferability of Best Practice across
Europe
Any serious attempt to stimulate the European
economy, increase employment rates and improve living
conditions must put entrepreneurship and business
stimulation at the centre. One way of achieving this is
by creating a supportive business environment, which
not only supports entrepreneurship but considers the
economic consequences of business failure. This report
aims to create a model for regional policy development
on Business Transfer support that can be transferred
across the EU. By analysing best practice examples from
selected countries, the key pillars which underpin
business transfer improvement are identified, along with
supportive actions which, if combined, can significantly
improve the business transfer support in regions and
ensure retention of knowledge and human capital is
achieved.
Contributing Authors
Lead Partner
The Athens Chamber of Small
Medium Industries
Dr Lilly T. Christoforidou
Dimitrios Kolliastasis
Dr Christos Tzortzis
Partner 3
The University of Strathclyde
Graham Smith
Brian McKechnie
Partner 4
Partner 5
Business Development Friesland
Lennard Drogendijk
(Authors)
Frank Hiddink
Barcelona Chamber of Commerce
Berta Perez
Paloma Miranda
Partner 8
Brasov Metropolitan Agency
Carmen Nechifor
Radu Colt
Partner 9
IHK Zetis GmbH
Michael Lill
Markus Bauer
Viktoria Braun
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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Table of Contents
Contributing Authors ................................................................................................................. 1
Table of Contents ....................................................................................................................... 2
List of Figures ............................................................................................................................. 3
List of Table ................................................................................................................................ 3
1. Introduction ........................................................................................................................ 4
1.1 Objectives of the report ................................................................................................ 5
1.2 The approach ................................................................................................................. 6
2. Typology of regions ............................................................................................................. 6
2.1 Attica (EL) ....................................................................................................................... 7
2.2 West Central Lowlands – Scotland (UK) ...................................................................... 11
2.3 Friesland (NL) ............................................................................................................... 12
2.4 Catalonia (ES) ............................................................................................................... 14
2.5 Palatinate (DE) ............................................................................................................. 15
2.6 Centru Region (RO) ...................................................................................................... 18
3. Identifying examples of best practice ............................................................................... 21
3.1 Grouping of regional best practice .............................................................................. 21
4. Regional Transfer .............................................................................................................. 25
4.1 Involved stakeholders and the exchange of knowledge ............................................. 25
4.1.1 The role of originator and receiver ....................................................................... 25
4.1.2 Elements of effective knowledge transfer and exchange .................................... 26
4.2 Assessing the transferability of SME policies and best practices ................................ 28
4.3 SWOT analysis of SME transfer policies for partner regions ....................................... 29
4.4 Summary ...................................................................................................................... 32
5. Recommendations ............................................................................................................ 32
Annex 1 – Full comparison of best practice characteristics .................................................... 36
Palatinate ............................................................................................................................. 36
Attica .................................................................................................................................... 46
Centru Region ....................................................................................................................... 52
Catalonia............................................................................................................................... 59
Friesland ............................................................................................................................... 67
West Central Lowlands - Scotland ....................................................................................... 72
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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List of Figures
Figure 1: Steps for planning an effective knowledge transfer/exchange ................................ 27
Figure 2: Regional Business Transfer Value Chain ................................................................... 33
List of Table
Table 1: Groupings by Category (theme) ................................................................................. 22
Table 2: Groupings by Target Group ........................................................................................ 23
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1. Introduction
The tendency to ‘borrow from elsewhere’ is apparent in a variety of policy fields in EU
member states, including SME transfer. Knowing that there is a sophisticated academic
debate on the parameters influencing domestic policy initiatives, we realise that little
attention has been given to the field of entrepreneurship, let alone business sustainability
following transfer. The project TOK-TOC has highlighted the need for developing new SME
transfer policies and for this reason it will examine the transferability of already existing
ones. For nearly 12 months the partners of TOK-TOC have been collecting and assessing
policies and case studies that can be ‘transferred in’ by partners who currently do not use
them.
It can be assumed that policy transfer is a multidimensional concept involving a process in
which knowledge about policies, administrative arrangements, institutions, etc., in one time
and/or place is used in developing policies, administrative arrangements, and institutions in
another time and/or place1. Researchers in Europe and the US have tried to determine the
cognate aspects of policy transfer by using terms such as ‘lesson drawing’2, ‘policy learning’3,
‘policy diffusion’4, ‘policy emulation’5 and ‘policy convergence’6.
There are very few studies, however, that have examined the transfer process directly and
with conceptual precision. In the quest for the definition of transferability for this report,
the TOK-TOC partnership came up with various questions that need to addressed to achieve
a meaningful report. For example, we have to agree on:
-
who transfers a policy on easing or supporting SME transfer?
why a policy on SME transfer needs to be transferred?
what is transferred during policy transfer ?
what are the criteria for selecting the lessons drawn from the implementation of
successful SME transfer policies?
what is the rationale for SME transfer policy changes?
how is culture entrenched in SME transfer policy resentment?
Detailed consideration of the relevant scientific literature indicates that there is a
continuum of SME transfer policy ‘borrowing’. This ranges from policy understanding and
implementation operating under conditions of perfect information and rationality at one
end (completely voluntary) and direct imposition on the other (completely enforced) at the
other end of the continuum. This conceptual framework about SME policy transfer entails a
complex process7 that results in goal-directed actions. These actions will be discussed in this
report in order to provide participating regions with the know-how to implement and
manage policy change.
1
Ram M., Theodorakopoulos N. and Worthington I., 'Policy transfer in Practice: Implementing Supplier Diversity in the UK, Public
Administration, 85 (3), 1-25 (2007)
2
Lesson Drawing in Public Policy: A Guide to Learning Across Time and Space Richard Rose, Chatham: Chatham House, 1993, pp. xvi, 176
3
Haas, P. (1992) Introduction: epistemic communities and international policy co-ordination’, International Organisation , vol. 46, pp.1_37.
4
Berry, Frances Stokes, and William D. Berry. 1999. Innovation and Diffusion Models in Policy Research. In Theories of the Policy Process,
edited by P. A. Sabatier. Boulder, Colorado: Westview.
5
Bennett, Colin J. (1991) “What is Policy Convergence and What Causes It?”, British Journal of Political Science, 21, 2, 215-33
6
Coleman, W. D. (1994), Policy Convergence in Banking: a Comparative Study. Political Studies, 42: 274–292.
7
See for example: Evans and Davies 1999; Jones and Newburn 2002; James and Lodge 2003; Lodge 2003
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So far, TOK-TOC’s partners through their Study Visits and the Best Practices Handbook have
identified four categories of policies supporting SME transfer, which have the potential to
be implemented in the receiving regions. These include:
(a) e-Platforms
(b) Incubators
(c) Clusters
(d) Local Entrepreneurship Development Companies
In addition, a SWOT analysis across all four policy areas has been carried out, with the
results identifying the SME transfer policies that are recommended for implementation
through the proposed SME transfer Model and given consideration as part of the regional
action plans that will be developed at the end of the project.
1.1
Objectives of the report
Any serious attempt to stimulate the European economy, increase employment rates and
improve living conditions must put entrepreneurship and business stimulation at the centre.
SMEs represent the most important source of new employment: they create more than four
million new jobs every year in Europe and provide two out of three of private sector jobs,
whilst contributing to more than half of the total value-added created by businesses in the
EU.
Yet Europeans’ willingness to create their own business is diminishing. In 2009, 45% of
Europeans were willing to be self-employed, now this percentage is 37%8. It is now more
difficult than ever for entrepreneurs and small businesses to secure investment. If job and
wealth creation are to continue to be fostered, the support provided by local governments
to SMEs, as facilitators and intermediaries becomes more and more critical.
One way of achieving this is by creating a supportive business environment, which not only
supports entrepreneurship, but also considers the economic consequences of business
failure. Local authorities have the capacity and potential resources to be a transfer
intermediary that helps owners of SMEs define and plan the most appropriate strategies to
exit.
This report aims to create a model for regional policy development on Business Transfer
support that can be transferred across the EU. By analysing best practice examples from
selected countries, the key pillars which underpin business transfer improvement are
identified, along with supportive actions which, if combined, can significantly improve the
business transfer support in regions and ensure retention of knowledge and human capital
is achieved.
8
European Commission (2010) Entrepreneurship in the EU and Beyond, accessed 18 August 2013:
http://ec.europa.eu/public_opinion/flash/fl_283_en.pdf
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1.2
The approach
This stage of the project has three key components that are inextricably linked through
close co-ordination by the partners involved. The first phase was to develop a methodology
for this particular component of the project, outlining the steps and flow of each project
deliverable.
Comprehensive desk research was carried out examining the issues and challenges of
business transfer across Europe and the impact demographic change will have on the
succession of businesses in the future. From this, a Handbook on Best Practices9 was
written specifically for policy makers and regional influencers involved in business support.
A key component of this was identifying elements of good practice that currently exist in
partner countries.
This document aims to elaborate further on the findings from the Handbook and determine
a strategy for transferring the identified best practices across regions, not only in the
partner countries, but in the future, across Europe.
The following Chapter will provide a brief overview of the current economic situation in
each of the partner countries where best practices will be transferred. This is followed in
Chapter 3 by identifying examples of best practice and categorising them into appropriate
sections. Chapter 4 begins to look at identifying how the knowledge transfer can be
achieved, using SWOT analyses to elicit the key strengths and weaknesses and highlight
opportunities and threats when making the transfer. Chapter 5 concludes with
recommendations on how to transfer best practice across regions. These draw on literature
associated with improving business competitiveness, to highlight how regional
competitiveness can be enhanced through the transfer of knowledge and human capital and
supporting SME business transfer in regions.
2. Typology of regions
In considering the transfer of practice from one organisation to another, factors relevant to
the Receiver can be seen as different from the Originator. Literature examined indicates that
the position of the Receiver is fundamentally important, if anything, more important than
the originating institution10. As a result, background information on the regions where the
TOK-TOC project partners are active is presented. These regional profiles help to explain the
particular circumstances in which a Good Practice example originated but also help to
indicate whether a particular region could be a suitable Receiving Region of a specific Good
Practice from another country.
9
Available on the project website: http://www.tok-toc.eu/en/bestpractices.php
Fielding et al. (2005), Factors Influencing the Transfer of Good Practice
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2.1 Attica (EL)
At present, Greece’s population is approximately 11 million and growing slowly. The
working population numbers about 4 million. Approximately 40% of the population lives in
the Attica area, which is primarily Athens and Piraeus, where more than 50% of Greek
industry and commerce is located. Thessaloniki, in northern Greece, has a population of
over 1 million. Patras, which lies in the northwest of The Peloponnese, has a population of
320,000. Larissa, which lies on the central mainland, has a population of 280,000.
Greece has a number of islands located in the Ionian Sea and the Cyclades islands, which are
located in the Aegean Sea. The population of these islands is currently expanding. The major
island is Crete, which has two major cities, Heraklion with a population of 290,000 and
Chania with a population of 130,000.
The population is homogeneous, but the Athens area, and to a lesser extent other major
cities, host an international community. Retired non-Greek residents prefer to reside in the
numerous islands of Greece, especially in Corfu, Rodos, Myconos and Paros where the cost
of living is low and the weather conditions are excellent for their age and health.
Due to its public sector debt and trade deficit, Greece is currently facing a financial crisis and
is dependent on the Community Support Framework (CSF) funding.
Prior to 2009, the country had enjoyed high growth rates on supportive fiscal policies, entry
into the Eurozone and successfully undertook the Athens 2004 Olympic Games. Its Growth
Domestic Product (GDP) currently runs at a negative rate of -4.4. An economic stability
program is presently being implemented. This aims to reduce the country’s budget deficit
below 3% of GDP and restore the competitiveness of the economy by creating a more
investor-friendly business environment which will foster a climate of confidence and trust
based on entrepreneurship, international orientation and competitiveness.
Greece’s main economic sectors are agriculture, construction, tourism and shipping, with
most activities centred in the major cities of Athens, Piraeus and Thessaloniki, where most
of the country’s population reside.
Commercial legislation has recently being supplemented (by Ministerial Decision
802/23.3.2011) and entrepreneurs may now easily, in a ‘one stop shop’, form any one the
following types of entities in Greece.
A ‘limited by shares’ company, known as ‘Anonymous Etairia’ (AE), can be established by
one or more persons or become a single shareholder company by the concentration of
shares to only one person in accordance with the provision of the Greek Law 2190/20 as
amended and currently in force by various Presidential Decrees.
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The law provides the minimum content of the statutes: the name and the object of the
company, the registered office, the duration, the amount and the way of paying in the
subscribed capital, the kind, number, nominal value and the issue of the shares, the
appointed auditors, the rights of the shareholders, etc.
When forming an AE, the founders of the company must adopt the statutes of the company
and sign the articles of incorporation before a public notary. The formation of a ‘limited by
shares’ company is usually put into effect by at least two or more physical persons or legal
entities and involves four stages:

Adoption of the articles

Subscription of share capital

Administrative authorisation

Publication
The formation of a ‘Single Shareholder Company limited by shares’ has been enacted by
article 47, Law 3604/2007. The summary below shows the steps that are necessary for a
new company to operate in Greece.
A limited liability company which is known under Greek Law as ‘Etairia Periorismenis
Efthinis’ (EPE) has features of a partnership and a corporation. It constitutes a convenient
form of organisation for both small and medium-size enterprises. The liability of the
participants is limited to the amount of their contribution (Law 3190/55). An EPE may be
formed by one or more physical persons or legal entities. The structure and operation of the
EPE is regulated by the Articles of Association (Statute) which must be executed before a
public notary. The Statute constitutes a registered public document and must state the
following:





Founders/shareholders: full name, profession, domicile and nationality
The company name: the company name of the EPE must either be formed by the name
of one or more of its shareholders or by the business object, and in all cases must
include the additional designation ‘Limited Liability Company’
The objectives of the company: the kind of business that it will conduct. An EPE may not
carry on a business which, according to the law, is compulsorily required by law to be
conducted only by another type of company. For example, banking and insurance
businesses must be companies in the form of an AE only
The registered office: must be established within the area of a Greek municipality or
community
The equity capital: the minimum required equity capital has been reduced (by Law
3661/2008) to an amount of EUR 4,500 paid in full, either in cash or other asset.
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






However, at least 50% of the capital must be paid in cash. If assets are contributed, their
value must be officially appraised by a special committee according to the provision of
article 9 of Law 2190/1920. The company’s capital is represented by company shares of
a nominal value of EUR 30 or multiples thereof. The shares of an EPE are not negotiable
instruments; in principle they are freely transferable and inheritable. The company’s
capital should be fully paid upon the signing of the Articles of Association. If the partners
are not Greek nationals, physical persons or legal entities, then it must be certified with
a ‘pink slip’ issued by a bank, that the amount corresponding to the contribution of the
partners has been officially imported into Greece, prior to the deed of formation of the
company
The duration of the company: the company is formed for a fixed period, as stipulated in
the statute.
In the Greek business community the following types of business transfer are foreseen.
Unexpected Business Transfer: Sudden change of ownership due an extreme event
(death, disability) or unforeseen economic disaster.
Completely Planned Transfer: Retirement of the transferor, transfer due to the
integration of children, change of occupation.
Partially Planned Transfer: With or without transferring the management of the business
Free Transfer: Provision for personal business (natural person) can be performed within
the family by succession, donation, inheritance, transfer of total shares, deed alive (sales
contract) or by accepting inheritance in the case of the owner’s death.
Payable Transfer: A sale carried by the owner in order to address the employment of
employees who belong to the family, as well as through sales to third parties or existing
businesses.
The transfer process differs depending on the type of company:





Personal business (natural person) by deed through inter vivo (sales contract ) or in case
of death of the owner, the company passes to his/her heirs.
General partnership: the partnership share may be transferred by an instrument of
transfer in life if there is a provision in the statute or agreement of all partners
Limited partnership: the transfer of shareholding is only possible if all partners agree
Limited Liability Company: transfer of shares is possible, unless it is specified in the
statutes; it is more complicated than the transfer of shares in a public company.
Transfer of Societe Anonyme is a transfer of shares; statutes may set restrictions only for
registered shares.
With regard to the incentive of business transfer, the following law applies:

Presidential Decree for the protection of employees in case of company mergers
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


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

Presidential Decree for the protection of employees in the event of transfers of
undertakings
Law on the institutional framework licensing Greek businesses
The issue of legally transferring the licenses to a new operator of the business in case of
expiry, provided that the company has not ceased to operate, at least from an economic
point of view, the operation of the company can change ownership without creating any
burden on the environment.
Taxes on business transfers vary. The actual enterprise value transferred to non-relatives
is taxed at 20%, while the transfer to second degree relatives is taxed between 1.2 to 2.4
%.
The lowest actual value of the transferred business is calculated by a Ministerial Decree
which is based on POL 1053/2003.
Goodwill arising from business transfer from parent to child or between spouses due to
retirement is exempt from income tax.
If the company is transferred to relatives it will be taxed at 2.4 %, while the transfer in
case of a donation or inheritance from parents to child or between spouses the tax rate
becomes 0.6 %, this percentage increased to 1.2% in case of other relatives .
In Greece the procedures for the transfer of business (sale - donation - parental inheritance)
involve the following:




Notary or private document
Endorsement by the head of the tax office - Payment of the relevant tax
Entry to the book of shareholders and shares
Annotation stock option or issuance of a new stock option
The transfer process (selling for free - parental benefit) requires the following:





Notary or private document
Visa to the competent tax office - Payment relevant tax
Statutes Amendment (in case of a private agreement)
Registration within one month at the Court Registry
Publication of a summary in the Government Gazette
The transfer process for shares (selling - for free - parental benefit) requires the following:




Existence of a relevant statutory provision in an agreement by all partners
Preparation private agreement
Endorsement by the competent Tax Office - Payment relevant tax
Court Decision
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Attica is the most developed Greek region and indeed is considered to be the pilot for many
innovative ideas supporting economic growth and business development. The practices
identified in this report can be easily transferred across business communities in Attica,
thus, paving the way for new policies in support of SME transfer.
2.2 West Central Lowlands – Scotland (UK)11
Glasgow is Scotland’s largest urban economy, generating almost £17billion Gross Value
Added each year and supporting over 450,000 jobs. The number of jobs located in the city
grew by more than 70,000 in the ten years to 2005, making it one of the fastest growing
cities in the UK.
In what is now a services-based economy dominated by financial and business services,
public administration, health and retail, average earnings have seen a year on year increase
and investment in business, infrastructure and property is thriving.
In terms of population, Glasgow has now reversed a long term downwards trend due to a
combination of a steady flow of in-migrants, more employment opportunities as well as the
social and cultural infrastructure to attract and retain residents.
Glasgow’s productivity (per employee) levels are similar to the average for UK cities but are
less impressive compared with the surrounding region, national averages, and much less
impressive than successful European cities. Productivity is a UK-wide concern, and relates to
a number of important issues such as innovation, skills, enterprise, competition and
investment.
A priority for the city’s economic development is therefore to achieve higher productivity
through innovation, skills and creativity. The strategy states that closing the production gap
between Glasgow and its international comparator cities will require a dramatic
improvement in productivity and a significant increase in employment. Achieving significant
employment growth alone, however, will not raise Glasgow’s performance sufficiently for it
to meet the aspirations set out in the vision. To close the current production gap, a 43%
increase in labour productivity along with a 50,000 increase in total employment would be
necessary to rank Glasgow among the best performing international cities.
At the launch of the Step Change - Glasgow’s economic strategy in 2006, Glasgow’s
employment rate was around 64%, considerably below the average for the English Core
Cities, and a full 9% points below the Scottish average. Glasgow’s working age employment
rate was 62.3% in the period April 2010-March 2011, below the Scottish and Core City
average. The impact of the recession has been significant on the city’s employment rate,
evidenced by a peak in employment levels at 66.8% in 2008, which was followed by a phase
of decline. Glasgow has had a very strong record of jobs creation over the last decade,
faster than any other UK city. Between 2000 and 2008, Glasgow experienced a 14% growth
in jobs while Scotland experienced a job growth rate of 8.3%. The sector that has generated
the largest number of new jobs in this period is real estate, renting and business (27,600
11
All information courtesy of Glasgow Economic Partnership, Accessed 17 September 2013: http://www.glasgoweconomicfacts.com/
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jobs created), with significant growth also experienced by health (17,900 jobs created),
retail and wholesale (8,900) and education (2,900). Glasgow’s working age unemployment
rate was 11.8% in 2010, following an upward trend that originates from the UK’s recession.
Glasgow’s economy has changed substantially over the last 25 years, with the city moving
from a major centre of production activity to a largely service sector economy. Recent
research concludes that 84% of Glasgow’s jobs are within the service sector, up from 72% in
1981. Specific service sectors that are generating the largest numbers of jobs in the city are
in finance, IT, business services, public administration, education and health.
Specific initiatives to support businesses also exist with provision directed from different
sources:







Scottish Enterprise: assists businesses in Scotland to grow and become more
successful. Also, supports key industry sectors and develops the business
environment to enhance Scotland's economy. (Government funded: national
coverage)
Scottish Development International: Broadens Scotland's international appeal assists
the growth of the Scottish economy by encouraging inward investment and helps
Scottish companies develop international trade. (Government funded: national
coverage)
Business Gateway: Practical help, advice and support for new and growing
businesses. (Government funded: national coverage)
Business@TheMitchell: Provides a free, dedicated online business reference and
enquiry service, to facilitate and support access to world-class business databases.
Resources include published market research, statistics, financial and company
information. (Local Authority funded)
Supplier Development Programme: a local authority partnership programme
established to offer small and medium sized enterprises (SMEs) the opportunity to
grow and diversify through procurement. With a public sector spend of over £9
billion, the SDP aims to assist SMEs (small to medium sized enterprises) improve
their performance in winning contracts with public sector organisations. We offer
information, support and training events to help unravel the tendering process.
(Local Authority funded : Glasgow coverage)
Glasgow Chamber of Commerce: Served the business community in the City for over
225 years, offering a comprehensive range of business services, products and expert
training, to help business realise its potential. (private and some Government
funding: Glasgow coverage)
Glasgow City Council Business Support: Offering support and grants on issues such as
finance and training. ( Local Authority funded : Glasgow coverage)
2.3 Friesland (NL)
Business support in general
The main player, the Chamber of Commerce Friesland, acts as support partner to SMEs. Key
aspects of the support offered by the Chamber include start-up support, enhancing
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internationalisation and business transfer. The Chamber of Commerce aims to help
entrepreneurs do business better by providing seminars, online information and advisory
interviews. There are 12 Chambers of Commerce throughout the Netherlands, each with its
own board of directors.
The climate has changed in the last few years and will continue to do so in the near future.
The Chamber of Commerce Friesland received structural funding from SMEs as all
companies needed to pay a yearly fee for their obligatory registration. This has ceased and
mandatory registration is now free by law. In addition, funding from the central government
decreased significantly and will, according to expectations, be further reduced over the
coming years. This means the Chambers of Commerce do not provide the same amount and
level of service, information and support as they used to. The central government does not
consider it their core task to provide (active) SME support and does not fund local or
regional governments to do so either, instead, leaving it to the market. This is an
opportunity for the private sector to fill the void.
Business support on Business Transfer
The three main sources of business support relating to business transfer in the Netherlands
and in the Friesland region are:



Chamber of Commerce support
Online matching platforms
Private sector, mostly micro and small enterprises
In the Netherlands, 35% of entrepreneurs are over the age of 50. This figure is projected to
increase in the coming years. Already two thirds cannot find a buyer, resulting in the so
called ‘pension drama’. The Chamber of Commerce in the Netherlands has set up various
initiatives in the past to deal with this issue and to improve Business Transfer programs. The
website of the Chamber of Commerce12 has a special section on Business Transfer, which
attracts over 1 million visitors annually.
Furthermore, they organised seminars such as “Business Takeover, the ideal start!” for
(potential) buyers and start-up entrepreneurs. For the other target group, sellers of private
companies, the Chamber organise a Masterclass series once a year. The masterclass consists
of sessions for 8 – 12 entrepreneurs. Individual support has become too costly, therefore
only group sessions are offered now.
A yearly event is the Business Transfer Day, this is held at different venues on the same day
in the whole country in co-operation with local partners. Roughly 2000 visitors (buyers and
sellers) take part in these events. The events are free for visitors to enter and the program
consists of plenary sessions and short seminars, matching and networking activities and an
information market.
12
Chamber of Commerce Netherlands website, Accessed 22 September 2013: http://www.kvk.nl/
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Between 2003 and 2008, the Chamber ran an online platform called “De
Ondernemingsbeurs”, which was then sold to a private company in 2009. There are
approximately 3,000 transactions via company transfer websites per year in the Netherlands
and there are more than ten of these types of platforms available. The private sector
consists mainly of small consultants, accountants, legal experts, that could be involved in
(certain parts of) the transfer process. Some specialise in supporting potential buyers and
others focus on sellers. They are represented by the Brancheorganisatie Bedrijfsoverdracht
Bemiddelaars or BOBB, the sector association of transfer facilitators.
In general, transfer support in the Netherlands scores well on information provision and
availability of digital platforms, but does not score well on availability of (support for)
financing. On a research and educational level, the HU Business School Utrecht pays most
attention to this relatively new field of study. They appointed Mr. Lex van Teeffelen as
Professor of Business Transfers and innovation; he is also considered leading in this field in
the Netherlands.
2.4 Catalonia (ES)
There is no official data on the transfer of firms in Spain. The only available data is one
provided by a recent study conducted by the Spanish Council of Chambers of Commerce
according to which 650,000 firms are likely to be transferred in the next 10 years (a ratio of
65,000 per year).
To address this problem the Spanish Government passed the Plan for Entrepreneurial
Continuity13 aimed at the creation of a more efficient market for Small and Medium
Enterprises Transfer. This plan, designed by the Spanish Council of Chambers of Commerce,
Industry and Navigation was focused on the promotion of support services for small and
medium enterprise transfer and purchase. The plan was organized around two tools:
National Platform for Transfers: The platform contains information on the number of
businesses for sale and those looking to buy a business. The platform also includes
important information on legal, juridical and administrative issues related to firms transfer.
National Network of Enterprise Transfer Centres: Enterprise Transfer Centres are specialised
offices providing support for enterprises purchasing processes. These centres are located in
the different chamber of commerce offices.
The different services provided in this plan were:

13
To the seller: Information contact point, analysis of the appropriateness of the
process, development of a company portfolio, counselling services and promotional
support.
Spanish Government (2013) Accessed 26 September 2013: http://www.plancontinuidadempresarial.es
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
To the buyer: Inclusion of the interested buyer in a data base, identification of the
most appropriate company on offer, legal and financial support to research/ review
the target business (financial, commercial, legal, human resources and intangible
assets).
This plan also foresaw a line of Participative Loans through the National Enterprise for
Innovation14 (ENISA) for the purchase of companies. However, it must be stated that the
implementation of this plan has been limited, since the available funds and the economic
performance of the country have halted its implementation. It is still unknown, whether the
actions and activities foreseen in the plan will be implemented.
To cover this gap, the Generate Directorate for Industry and the Small and Medium
Enterprise (DGPYME) has recently created the Plan de transferencia de Empresa (Plan for
Enterprise Transmissions). In the framework of this plan, the Catalan Employees Association
CECOT and a private foundation promoting self-employment in Catalonia (CP’AC), in
collaboration with the DGPYME, have implemented the Reempresa (Re-enterprising) Centre
of Catalonia15. This project that received the contribution of the EU through the ERDF
instrument (supported through the “Entrepreneurial Development and Innovation” priority
of the Operational Programme “Catalonia) is a new model of entrepreneurship and business
development that works to provide continuity to businesses by matching business owners
and entrepreneurs.
The REEMPRESA project provides a matchmaking service between business owners, who
want to sell on their business, and entrepreneurs, who want to take over a business. The
Reempresa website and the centres themselves – located in cities throughout Catalonia
(Barcelona, Terrassa, Tarragona, Girona and Lleida) – advertise businesses that are for sale.
It also provides support to the owners and the entrepreneurs on the business transfer
process. Entrepreneurs, in turn, can put their ideas and energy into making the business
successful. Reempresa also organises information programmes to highlight the benefits of
its approach to companies seeking to divest their interests, and for potential reentrepreneurs.
2.5 Palatinate (DE)
In Palatinate, a range of services are offered to support Business transfer by a variety of
different agencies. Information and advisory services are primarily provided by the
Chambers of Industry, Business Development agency, the service providers such as tax and
business consultants, as well as financial institutions. Low-interest loans, guarantees and
grants are provided through the development institutions.
14
15
ENISA, Accessed 24 September 2013: http://www.enisa.es/
Reempressa, Accessed 24 September 2013: http://www.reempresa.org
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


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Chamber of Industry and Commerce for the Palatinate, Palatine Chamber of Skilled
Crafts and Economic Development Agency City and County of Kaiserslautern (WFK
mbH),
Credit Institutions, including Volksbanken and Raiffeisenbanken, Sparkassen,
Development institutions and private commercial banks and
Service providers in the field of liberal professions, including lawyers / notaries, tax
and business consultants.
The services are (non-financial):





Internet services
Consultations
Information Sessions
Company valuations
Business exchanges
The offer of support covers a wide range and includes the following activities:







Information and mediation services, such as Information on the Internet,
information events (information lectures / seminars) or placement of professionals.
Consulting services, for example Assistance in financial planning (including in
creating appraisals) or legal issues, counselling / coaching in different stages of
succession.
Help with the successor or company search, for example in the form of successor /
corporate profiling and contact placement, whether in the context of brokerage
events, contact events or through direct distribution efforts.
Technical training and education
Conciliation / mediation in conflict-ridden succession solutions.
Determine the value of the company.
Moderation of the complete succession process.
The focus of the offer depends on what is required and expert help can be offered across a
range of subject areas. Distinction is made between short consultations (up to one hour)
and consultations that are longer than one hour. It appears that the representatives of the
liberal professions prefer longer discussions over short consultations. Through the
Chambers, however, both forms of counselling are offered equally. This also applies to the
lending institutions.
Information services constitute the second focus of the grants through multipliers. These
mainly include contact and information sessions, information leaflets and CDs, as well as a
source of information on the Internet. These services are mainly provided by chambers and
banks, less by corporate accountants and lawyers / notaries and tax advisers. Seminars are
also offered to deepen selected topics, especially by the chambers and lawyers.
Another important role in supporting the succession process is the placement of
professionals into businesses. This is done by most multipliers. Multipliers often make
referrals to each other.
Assistance in finding a suitable successor, or takeover company is equally important.
Chambers and business development agencies offer this support by providing business
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exchanges. The representatives of the liberal professions, which have generally not their
own operating stock exchanges, the management consultants offer assistance in the search
and discovery process. This service is also provided by a lot of financial institutions.
The moderation of the entire succession process or phase-coaching support is especially
offered by consultants, chambers and tax advisors.
A frequent point of conflict in the context of business transfers is the negotiation of the
purchase price. This conflict can be addressed through business appraisals as a basis for
determining the purchase price, and is carried out by Chambers, tax advisers and business
consultants.
Chamber of Industry and Commerce for the Palatinate16
The Chamber of Industry and Commerce for the Palatinate represents the interests of more
than 75,000 member companies with respect to politics and administration. It informs and
advises on all relevant economic matters, offers services in vocational and further training
and operates as a platform for the exchange of experiences.
IHK Zetis GmbH – Centre for Technology and Innovation Consulting Southwest17
IHK Zetis GmbH is the 100 % project subsidiary company of IHK Pfalz (Chamber of
Commerce and Industry Palatinate) with an office in Kaiserslautern, Germany. Working in
closely connected structures, IHK Zetis GmbH is the central contact for small and mediumsized businesses for all matters relating to IT, innovation, energy or staffing.
Palatine Chamber of Skilled Crafts18
The Palatine Chamber of Skilled Crafts, based in Kaiserslautern is one of 54 chambers of
crafts in the Federal Republic of Germany. It lists nearly 17,000 member companies with
110,000 employees.
WFK Economic Development Agency City and County of Kaiserslautern19
The Economic Development Agency City and County of Kaiserslautern, advises and supports
companies who decide to locate their business in that area - from start-ups to global
players.
16
http://www.pfalz.ihk24.de/en
www.zetis.de
18
http://www.hwk-pfalz.de/51,1015,1455.html
19
http://www3.kaiserslautern.de/wfk-kl/pages/our-services.php?lang=EN
17
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Business + Innovation Center Kaiserslautern GmbH, bic20
The BIC offers an individually tailored advice and support program to suit each phase of
business development.
Gründungsbüro / Foundation office21
As a joint facility of the University of Technology and the University of Applied Sciences
Kaiserslautern, the Foundation Office provides comprehensive support to all students,
employees, founders, alumni and research institutes in the pre-business start up phase.
ISB Investment and Economic Development Bank of Rhineland-Palatinate22
The ISB and the KFW Mittelstandsbank (bank for small and medium-sized businesses)
support business start-ups with a range of programs. Investments concerning either the
start-up phase or the so-called "Existenzsicherungsphase", which is defined as the term for
the 5 years following the foundation and ensuring the continuation of the business, are
eligible for support. A company takeover is usually connected with a business start-up;
therefore the currently applied programs for business start-ups also apply in the case of
company takeovers.
SES Senior Experten Service23
The full name of the Senior Experten Service (SES) is the Foundation of German Industry for
International Cooperation. SES offers interested retirees the opportunity to pass on their
skills and knowledge to others, both within Germany and abroad. They work in a voluntary
capacity as Senior Experts, helping to train both specialist workers and management staff.
They help others to help themselves – an important contribution towards safeguarding a
small slice of the future. It is a system that benefits all parties.
2.6 Centru Region (RO)
Romania has a great market potential, the largest market in South Eastern Europe, the
second largest market in Central and Eastern Europe and one of the biggest domestic
markets in the European Union. Starting a business requires 6 procedures, takes 10 days,
costs 2.8% of income per capita and requires paid-in minimum capital of 0.8% of income per
capita. Globally, Romania stands at 68 in the ranking of 185 economies on the ease of
starting a business. ‘Doing business’ depends on how easy or difficult it is for a local
entrepreneur to open and run a small to medium-size business when complying with
20
http://www.bic-kl.de/php/index.php
http://www.gruendungsbuero.info/
22
http://isb.rlp.de/en/home/
23
http://www.ses-bonn.de/en/home.html
21
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relevant regulation. For the policy makers trying to improve their economy’s regulatory
environment for business, a good place to start is to find out how it compares with the
regulatory environment in other economies. For the policy makers, knowing where their
economy stands in the aggregate raking in the ease of doing business is useful. It is also
useful to know how it ranks relative to comparator economies and relative to the regional
average. As a result of a rapid increase in the number of companies over the past few years,
the majority of private enterprises, in particular SMEs are still rather young. Yet, many of
the owner-managers of these companies have reached the age where they are thinking
about transferring their business. Apart from the general economic importance of business
transfer, preserving traditional activities is also an issue. In addition it has to be taken into
account that the owner reaching retirement is not the only reason for the transfer of
enterprises.
Organising support for the transfer of business is still at an early stage. Some provisions
have been established by the law no. 346/2004 on stimulating the setting-up and
development of SMEs. At present there are no organized marketplaces for the transfer of
business.
Brasov County has a significant potential for economic growth. The average rate of growth
of the county exceeded the national and regional average; Brasov is the most competitive
city in the centre region. The economic profile of Brasov Metropolitan Area is mainly
determined by activity in trade, industry and construction. In an attempt to standardise the
economic and environmental compliance conditions and balance regional development in
the Brasov metropolitan area, a part of current investments but also new investments, will
be located in the municipalities surrounding Brasov City, especially near transport
infrastructure, which will lead to economic development. In the Brasov metropolitan area
83% of the companies are located in Brasov city, and they represented 88% of total
turnover. The procedures for selling a business in Romania are governed by the Law on
commercial companies. The Law on commercial companies establishes the general
framework under which companies operate in Romania. It covers the acquisition of shares
from other companies, takeovers of firms by other firms, and mergers of two or more firms
to form a single new company. The procedures for acquiring a company are governed by
the Law on joint stock companies and limited liability companies. The process of transferring
a business involves the following main steps:



Entering into a share transfer contract;
Updating the act constitutive (memorandum of association); and
Registering the amendment in the Trade Register.
Share transfers may be carried out at the value stipulated in the memorandum of
association or a higher value, in which case the new partner must pay a tax of 16%
applicable to the difference between the nominal value and the acquisition value. Taking
over an existing company is a worthwhile alternative to setting up a new business.
Certain procedures have to be followed when transferring shares in a company to a
partner/shareholder, such as:
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



Requesting that the details regarding the partners/shareholders of the company be
amended;
Drawing up the updated memorandum of association of the company;
Drawing up the transfer contract; and
Submitting the entire dossier to the Trade Register for the amendment to be
registered.
The documents required for this purpose can be obtained from the National Trade Register
Office. At national level we have the following business support structures:
Private organisations

Alliance of Employers Confederations in Romania: represents employer’s
confederations in all sectors of the economy, at both national and international
level.
Public – private organisations



Chamber of Commerce and Industry of Romania: offers a business information
service.
Advisory Committee for the Development of Small and Medium – Sized Enterprises:
was established as a forum for dialogue about SMEs. It consists of specialised public
administration bodies, representatives of the Chamber of Commerce and employers
organisations, non-governmental organisations representing small and mediumsized enterprises, and entrepreneurs.
Romanian Centre for Small and Medium – Sized Enterprises: promotes the SMEs
sector in Romania and aims to ensure sustainable development and growth in the
context of economic competitiveness at macroeconomic level in the European
business environment.
Public organisation


Agency for the Implementation of Projects and Programmes for SMEs: provides
support for SMEs in numerous fields.
National Council of Small and Medium – Sized Private Enterprises in Romania:
promotes and protects the economic, commercial and legal interests of private SMEs
in Romania.
In Brasov there are the following structures for business support:


Chamber of Commerce and Industry Brasov;
Romanian Business School Foundation – Regional Branch Brasov;
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




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
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Territorial Office of SMEs;
Municipality of Brasov;
National Trade Register Office;
Brasov Business Centre;
Association of Business Women and Top Managers in Brasov;
Incubator structures;
Clusters structures; and
Consulting companies in the business sector.
The concept of business transfer from sellers to buyers it is quite new in Brasov and we
hope that we can help through this project to implement this concept in the area.
3. Identifying examples of best practice
From the Handbook of Best Practices, developed by the partnership, 17 examples of good
practices and policies were collated by the TOK-TOC consortium. They originate from
Greece, Spain, Scotland, the Netherlands, Germany and Romania. To properly analyse them
a template was developed to ensure the comparability of the individual good practices. It
examined the key features of the initiative as well as the results and (transferability)
barriers.
3.1 Grouping of regional best practice
These Good Practices can be grouped in numerous ways. The most relevant alignments are
depicted in Tables 1 and 2 below. Direct target group and Category (or theme) are two of
the most distinct ones. These overviews allow us to see what type of Good Practices we
have on board this consortium and which exist close to or in the direct field of influence of
the consortium partners.
Categories of the Good Practices include: Awareness raising (1), Clusters (2), Education (2),
Grant support (1), Incubation and facilitation (2), online platforms (4), SME support and
advice (5). The figures in between brackets indicate the number of Good Practices in the
respective categories.
The direct target group of the Good Practices can be divided into the following sets: Buyers
& Sellers (8), Entrepreneurs (5), Family Business Owners (2), SME management and internal
government staff (2).
The tables show there are two groups of Good Practices with clear and specific target
groups, namely Buyers & Sellers and Family Business Owners. Moreover, there are two
groups of Good Practices with a more general target group.
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Table 1: Groupings by Category (theme)
No. Title
Country Scope
Category (theme)
Target group
Awareness raising
Buyers & Sellers
1
National Business Transfer Day
NL
Netherlands (national)
2
Business cluster center
EL
Attica & Western Greece (regional) Cluster
entrepreneurs, start-ups, investors
3
Scottish Enterprise
UK
Scotland
Cluster (cooperation)
SMEs
4
Romanian Business School
RO
Brasov (regional)
Education
entrepreneurs, business people
5
Open Competence Region Western Palatinate
DE
Western Palatinate (regional)
Education
entrepreneurs, employees
6
NIOF grant
NL
Northern Netherlands (regional)
Grant support
Buyers & Sellers
7
Dev. of a framework of business creation
EL
Lavrio, Attiki, Greece (local)
Incubation, SME support and advice
entrepreneurs, start-ups
8
Center for Business
RO
Brasov (regional)
Incubation, SME support and advice
entrepreneurs, start-ups, univ.
9
Bizmarket.gr
EL
Greece (national)
Online platform
Buyers & Sellers
10 Ondernemingsbeurs.nl
NL
Netherlands (national)
Online platform
Buyers & Sellers
11 Reempresa
ES
Catalunya (regional)
Online platform
Buyers & Sellers
12 nexxt-change
DE
Germany (national)
Online platform
Buyers & Sellers
13 Scottish Family Business Association
UK
Scotland
SME support and advice
family business owners
14 Building Better Business
UK
Glasgow (local)
SME support and advice
SMEs and internal gov. staff
15 Business Continuity Plan
ES
Spain (national)
SME support and advice
Buyers & Sellers
16 Family Business Workshops
ES
Catalunya (regional)
SME support and advice
family business owners
17 Senior Expert Service (SES)
DE
Germany (national)
SME support and advice
Buyers & Sellers
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Table 2: Groupings by Target Group
No. Title
Country Scope
Category (theme)
Target Group
Bizmarket.gr
EL
Greece (national)
Online platform
Buyers & Sellers
Ondernemingsbeurs.nl
NL
Netherlands (national)
Online platform
Buyers & Sellers
National Business Transfer Day
NL
Netherlands (national)
Awareness raising
Buyers & Sellers
NIOF grant
NL
Northern Netherlands (regional)
Grant support
Buyers & Sellers
Business Continuity Plan
ES
Spain (national)
SME support and advice
Buyers & Sellers
Reempresa
ES
Catalunya (regional)
Online platform
Buyers & Sellers
nexxt-change
DE
Germany (national)
Online platform
Buyers & Sellers
Senior Expert Service (SES)
DE
Germany (national)
SME support and advice
Buyers & Sellers
Romanian Business School
RO
Brasov (regional)
Education
entrepreneurs, business people
Open Competence Region Western Palatinate
DE
Western Palatinate (regional)
Education
entrepreneurs, employees
Dev. of a framework of business creation
EL
Incubation, SME support and advice
entrepreneurs, start-ups
business cluster center
EL
Lavrio, Attiki, Greece (local)
Attica and Western Greece
(regional)
Cluster
entrepreneurs, start-ups, investors
Center for Business
RO
Brasov (regional)
Incubation, SME support and advice
entrepreneurs, start-ups, univ.
Scottish Family Business Association
UK
Scotland
SME support and advice
family business owners
Family Business Workshops
ES
Catalunya (regional)
SME support and advice
family business owners
Building Better Business
UK
Glasgow (local)
SME support and advice
SMEs and internal gov. staff
Scottish Enterprise
UK
Scotland
Cooperation
SMEs
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As mentioned, in the Best Practices Handbook, four categories of policies supporting SME
transfer have been identified, which have the potential to be implemented in the receiving
regions. These include:
(a) e-Platforms
(b) Incubators
(c) Clusters
(d) Local Entrepreneurship Development Companies.
It can be concluded that these four categories match very well with the 4 main groups of
categories of the Good Practices found and also with the distinctive target groups.
In the TOK-TOC definition the cluster approach represents a policy, measure or practice
aimed at a specific target group. Therefore Good Practices on succession aimed at Family
Business Owners or specifically at women fit within our cluster definition. A strict sectoral
or local approach inside a traditional cluster alone could prove difficult. Competition and
presence in related sectors could be problematic and also anonymity for sellers is hard to
secure.
As far as Incubators and Local Entrepreneurship Development Companies are concerned,
the Best Practices Handbook highlights the fact that, incubators, start-up networks and
centres provide important support on the path to self-employment. It is also clear that
those who have decided to start their own business are faced with a wide variety of
challenges and questions. Currently business incubators merely focus on start-ups, whereas
current theory increasingly shows that taking over existing business might prove more
sustainable and create more corporate and societal value.
In many countries less attention is paid to those individuals who wish take over ownership
of a company rather than those who set up a new business. Even so, the full range of
support available to start up businesses from counselling to coaching as well as funding and
operational support could be used for those who take over a business by inheritance,
partnership or any other buying model. Therefore, incubators should offer their support not
only to start-ups but they should also offer consulting to business succession planning. They
can offer an opportunity for sellers and buyers to meet on "neutral ground" to be a catalyst
in the business transfer process.
This is a new ground would be an innovation in the incubator world. There are no known
cases where incubators use their pipeline of potential entrepreneurs to connect them to
existing companies with a succession demand. Some ground has to be covered first. Most
incubators do not have a list of succession opportunities. This is new territory. However,
according to the consortium, a feasible new task for any incubator could be whether or not
to engage and make use of an e-platform.
Incubators and Local Entrepreneurship Development Companies already have a great
network in the financing world of banks, venture capitalists, business angels, as well as
accountants and financial advisers. Banks, especially, are fully aware of the risk associated
with unsuccessful succession. Incubator centres could become a link between
entrepreneurs and ageing business owners with a demand for succession.
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4. Regional Transfer
Having carried out the categorisation, this section considers how the transfer of policy and
practice can be achieved. In particular, it will focus on the role of the ‘originator’ of the
policy/best practice and the ‘receiver’ of the policy/best/practice. It also carries out an
impact assessment; assessing the transferability of SME policies and best practices through
use of a SWOT analysis of SME transfer policies for partner regions.
4.1
Involved stakeholders and the exchange of knowledge
For successful transfer to be realised, all stakeholders need to be optimally aligned. This
applies to policy transfers in a similar way to business transfer. In other words, to ensure
effective knowledge transfer and exchange are successfully achieved, all elements
contributing to it should be optimised.
4.1.1 The role of originator and receiver
In considering the transfer of practice from one organisation to another, factors relevant to
the Receiver can be seen as different from the Originator. The position of the Receiver is
fundamentally important, if anything, more important than the originating institution 24.
Yet, the distinction between receiving and originating is somewhat misleading as the two
are intrinsically connected. If the learner’s goals, mind set and other personal
characteristics are central then it is the so-called receiver who needs to be in the driving
seat25. Further, implied in this distinction is a unidirectional flow, which may mask different
contributions able to be made by different participants. Nevertheless, several useful points
do emerge through such a division and these are discussed below.
For the Receiver, learning and relationships are inter-connected in certain ways. First, the
Receiver ‘pulling’ in new practices is better than them being ‘pushed’ in by others, i.e.
demand driven26. At the heart of this is motivation to learn, where ultimately successful
transfer of best practices comes back to a personal and organisational willingness and desire
to learn. A vibrant sense of curiosity and a deep respect and desire for learning from others
are the real keys.27
Second, professional learning is often, though not always, a deeply social process, where
observed relationships seem to precede and be required for meaningful transfer20, and this
is a matter of psychological receptiveness and addressing issues of transferring tacit
knowledge. Certain types of practice seem to require a rich, dialogic set of arrangements if
24
Fielding et al. (2005), Factors Influencing the Transfer of Good Practice
Cunningham, I. (1999) The Wisdom of Strategic Learning
26
O'Dell, C. & Grayson, C.J. (1998) If Only We Knew What We Know: Identification and Transfer of Internal Best Practices
27
ibid
25
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they are to be successful. Third, there is an affective dimension to practice transfer28 where
the necessity of allowing time and encouraging access to feelings and values is planned.
A major implication is that ‘active reception’ through an active approach to meeting one’s
own learning needs is required.20
In actively receiving new practices, the ability to recognise, absorb and assimilate new
external information is the overarching requirement identified by a range of authors 29. This
has been termed ‘absorptive capacity’.
An alternative way of conceptualising transfer comes from the knowledge management
literature in general and the communities of practice literature in particular and concerns
the ‘sticky’ nature of the knowledge which organisations produce20. Thus Hewlett Packard in
the USA developed a very effective set of processes for identifying best practices, but
encountered great difficulty in moving them around the corporation. The ‘flow’ of good
ideas and imaginative, effective practices that emerge within organisations is not always
free or smooth. Knowledge produced in one locality has embedded in it a substantial tacit
dimension.30
In making knowledge less sticky, a ‘knowledge conversation’ which takes place through four
steps: (1) socialisation (2) externalisation (3) combination and (4) internalization is
advocated.31
Particular communities may develop their own screening processes to help them decide
what is worth attending to and what is not, what counts as evidence and what does not 20.
‘Warrants’ can be the endorsements for knowledge that encourage people to rely on it and
hence make it actionable23 and are particularly important in situations in which people
confront increasing amounts of information, ideas, and beliefs. The locally embedded
nature of these practices and warrants can make knowledge extremely ‘sticky’. Therefore,
it takes organisational work to develop local knowledge for broader use, and that the knowhow, know-what and warrants embedded in practice are divisions requiring understanding,
but are highly inter-twined in different ways in different places20.
Through encouraging dialogue and exploration in a rich and engaged manner, it may, with
the help of the Receiver, begin to develop some deeper understanding of the very process it
wishes to engage in. An Originator learns how to become a good transfer partner by having
the right kinds of encounter; it cannot make the tacit explicit in any other way. It needs to
encourage its Receiver to go on asking, to probe more deeply.
4.1.2 Elements of effective knowledge transfer and exchange
The key to effective knowledge transfer and exchange is in the planning and preparation of
the elements. According to Zarinpoush, Von Sychowski and Sperling32 the five key elements
of knowledge transfer and exchange are:
28
Goleman, D., Boyatzis, R. And Mckee, A. (2002) Primal Leadership: realizing the power of emotional intelligence
e.g. Cohen, W.M. & Levinthal, D.A. (1990) Absorptive Capacity: A New Perspective on Learning & Innovation
30
Brown, J. S. & Duguid, P., (2002) ‘Organizing Knowledge’
31
Nonaka, I, & Takeuchi, H. (1995) ‘The Knowledge Creating Company’
29
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




the audience (referred to as the Receiver in this report);
the message;
the messenger (referred to as the Originator in this report or the intermediary);
the delivery method; and
the evaluation.
In practice, these elements appear to be closely inter-related (see Figure 1).
Figure 1: Steps for planning an effective knowledge transfer/exchange33
32
33
Zarinpoush, Von Sychowski and Sperling (2007) ‘Effective Knowledge Transfer & Exchange For Nonprofit Organisations’
Zarinpoush, Von Sychowski and Sperling (2007) ‘Effective Knowledge Transfer & Exchange For Nonprofit Organisations’
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4.2
Assessing the transferability of SME policies and best
practices
The SWOT analysis is a structured planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favourable and unfavourable to achieving that
objective. Setting the objective should be done after the SWOT analysis has been
performed. This would allow achievable goals or objectives to be set for the organisation:




Strengths: characteristics of the business or project that give it an advantage over
others.
Weaknesses: characteristics that place the team at a disadvantage relative to others.
Opportunities: elements that the project could exploit to its advantage.
Threats: elements in the environment that could cause trouble for the business or
project.
Identification of SWOTs is important because they can inform later steps in planning to
achieve the objective. First, the decision makers should consider whether the objective is
attainable, given the SWOTs. If the objective is not attainable a different objective must be
selected and the process repeated. One way of utilising SWOT is matching and converting.
Matching is used to find competitive advantage by matching the strengths to opportunities.
Converting is to apply conversion strategies to convert weaknesses or threats into strengths
or opportunities. An example of conversion strategy is to find new markets. If the threats or
weaknesses cannot be converted a company should try to minimise or avoid them.
SWOT analyses aim to identify the key internal and external factors seen as important to
achieving an objective. The factors come from within an organisations’ or projects’ unique
value chain (distinguishing primary activities and support activities). SWOT analysis groups
key pieces of information into two main categories:


internal factors – the strengths and weaknesses internal to the organisation
external factors – the opportunities and threats presented by the environment
external to the organisation
Analysis may view the internal factors as strengths or as weaknesses depending upon their
effect on the organisation's objectives. What may represent strengths with respect to one
objective may be weaknesses (distractions) for another objective. The external factors may
include macroeconomic matters, technological change, legislation, and socio-cultural
changes, as well as changes in the marketplace or in competitive position.
As stressed previously, the role of both the Originator and Receiver is very important. As
part of the result of this analysis, a profile will be created for the ideal or most suitable type
of Receiver organisation for every identified Good Practice.
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4.3
SWOT analysis of SME transfer policies for partner regions
The 17 Good Practices can be grouped according to category (or theme). Categories of the
Good Practices include:







Awareness raising (1),
Clusters (2),
Education (2),
Grant support (1),
Incubation and facilitation (2),
Online platforms (4),
SME support and advice (5).
The figures in between brackets indicate the number of Good Practices in the respective
categories. This paragraph presents the strengths, weaknesses, opportunities and threats of
these 7 categories in 7 tables.
Online platforms
Strengths:
Opportunities:
1. Low barriers
2. Open 24/7
3. Large scope
4. Targets both buyers and sellers
5. Direct approach
1. Not common yet in all EU countries
2. Various EU policy documents aim for
increased cross border collaboration and
financing models
Weaknesses:
Threats:
1. Lot of existing competition
2. Easy to enter market
1. Business Model
2. Distant (lacks a personal approach)
3.Only few platforms of international scope
in operation
Clusters
Strengths:
Opportunities:
1. Stronger together
2. Learn from each other
3. Effective use of means
1. Extra spinoff of getting SMEs together
Weaknesses:
Threats:
1. Most cluster approaches are not directly
aimed at business transfer (only)
2. Openness may interfere with preference
for anonymity among buyers/sellers
2. Multi clustering would further increase
take-over opportunities (adjacent sectors)
1. Good cooperation between cluster
partners may be sufficient for them and
never lead to actual business transfer
2. EU fosters integrated SME approach
instead of a sector approach
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Education
Strengths:
Opportunities:
1. Addresses lack of awareness on various
aspects of business transfer
2. Demystifies a lot of myths on certain
aspects of business transfer
3. Knowledge provision makes you
automatically an expert
1. Returning ‘customers’ and referrals as a
result of knowledge sharing.
Weaknesses:
Threats:
1. Information provided can be too general
or irrelevant for specific cases
2. Educating and providing information
alone is not enough to facilitate a business
transfer
2. Increased attention for entrepreneurship
development in education institutes leads to
more candidates
3. Similar approach (in terms of required
educational competencies) for start-up and
take-over business.
1. Young field of (research) study, little
(local) data available
2. Competitors in providing education on
this topic can catch up and leapfrog you fast
3. Business Model
Grant Support
Strengths:
Opportunities:
1. Brings certain activities within reach that
would not have been achieved without grant
support (solve market imperfection)
2. Only the direct target group (active
entrepreneurs who apply) get grant support
1. Growing interest from local, regional and
national governments for the Business
Transfer topic may result in providing
funding for these type of support measures
Weaknesses:
Threats:
1. Grant or subsidy based
2. Time and effort by entrepreneurs to apply
3. Costs for control by grant issuer
4. Indirect approach
1. Discontinuation of support from
government will directly end the grant
scheme
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Incubation
Strengths:
Opportunities:
1. Use of existing centres
2. Use of existing networks
3. Presence of pool of possible (young)
buyers
1. Good extension to current activities on
entrepreneurship
2. Strengthening ties with universities on
this topic to start joint effort
3. Growing interest from local and regional
governments for the Business Transfer topic
Weaknesses:
1. Generally people do not associate
incubation with business transfer
2. Knowledge gap among incubator
management or staff on topic of business
transfer
Threats:
1. Specialist business transfer organisations
2. Dealflow of incoming sellers to generic
3. Loss of incubation focus
SME support and advice
Strengths:
Opportunities:
1.Addresses lack of awareness on various
aspects of business transfer
2. Demystifies a lot of myths on certain
3. Knowledge provision creates expertise in
house
1. Returning ‘customers’ and referrals as a
result of knowledge sharing.
Weaknesses:
Threats:
1. Information provided can be too general
or irrelevant for specific cases
2. Support & advice alone may not enough
to facilitate a business transfer
2. Consultancy fee acceptance for quality
service leads to enlarged market
1. Typically the organisations providing SME
support and advice get (partly) funded by
the government, and thereby are
dependent.
3. Business Model
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Awareness Raising
Strengths:
Opportunities:
1. Wide impact
2. Effective use of means (addressing
multiple recipients at the same time)
1. Returning ‘customers’ and referrals as a
result of knowledge sharing.
3. Knowledge provision makes you
automatically an expert
2. Digital and social media use leads to lower
costs and increased impact
Weaknesses:
Threats:
1. Indirect approach
2. Measurement of success is hard
1. Discontinuation of support from
government will directly end the activities as
not self-supporting
4.4 Summary
This section has categorised the identified regional best practices in to seven categories:
Awareness raising; Clusters; Education; Grant support; Incubation and facilitation; Online
platforms; and SME support and advice. The results of the SWOT analyses have been
carried out and highlight the range of strengths and weaknesses that exist as well as the
opportunities and threats against each category of support.
Based on this work the following section presents the recommendations of this
transferability report and a model for regions to use to help to improve business transfer
and enhance the regional economic potential in receiving regions.
5. Recommendations
To successfully implement a regional strategy, which supports and enhances business
transfer, an integrated approach should be adopted, one where each organisation uses its
strengths to the maximum and adopts activities (or functions), that fits its capabilities and
(funding) structure. Moreover, intense cooperation between these regional stakeholders
further enhances the chances of success to ultimately increase the number of successful
business transfers in the region.
A key driver of organisations is competitiveness. They want to out-perform their
competition and create a competitive advantage. Even in the public sector, service provision
is increasingly monitored, with service delivery measured and accounted for. Therefore, it is
in the interest all organisations, whether public, private or voluntary to continually look at
ways of gaining an advantage or improving performance. This is particularly crucial in this
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case, where receiving organisations in regions will vary greatly in terms of their culture and
approach. The one commonality is that they will be keen to improve their economic
situation
Drawing on competitive advantage theory34, it is possible to draw comparisons with the
aims and objectives of the TOK-TOC project: transferring knowledge and human capital to
improve regional economic performance. The ‘Value Chain’ model is often cited as being a
model to help companies realise the goal of competitive advantage. It proposes that within
organisations there are several functions that can be broken down into Primary and Support
functions. Primary functions can be attributed to the creation or delivery of a product or
service and can be grouped into five main areas: inbound logistics, operations, outbound
logistics, marketing and sales, and service. The primary activities are linked to support
activities that help to improve their effectiveness or efficiency, with four main areas:
procurement, ICT including research and development, HRM and infrastructure (planning,
finance, quality, information management).
Using the key principles of the ‘Value Chain’, the concepts of SME business transfer support
and the key functions of knowledge transfer have been analysed in the context of business
succession, and captured within the ‘Regional Business Transfer Value Chain’ show in Figure
1 below.
Figure 2: Regional Business Transfer Value Chain
Regions can use these primary and support activities as ‘building blocks’ to create value.
Value could directly benefit both buyers and sellers, but of equal importance, benefit the
34
Porter, M.E. (1985) The Competitive Advantage: Creating and Sustaining Superior Performance, New York: Free Press.
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region as a whole through safeguarding existing jobs and creating new ones within
established entities.
The pillars or primary functions are the most important and form the fundamental
elements:
1. Impartial guidance and support – support provided to both buyers and sellers that is
impartial and without bias.
2. Technological solutions – the integration of technologies such as e-platforms for
Buyers and Sellers to access a virtual market place where genuinely interested
parties can come together and do business.
3. Financial investment – Through the use of regional grants, sourced European
funding or alternative funding mechanisms, the direction of funding to support the
business transfer process.
4. Business incubation – incubators where entrepreneurs can share knowledge and
experiences and grow their business.
With the primary functions in place, there are a number of supporting functions that can
further enhance the process, including:
4. Engaged Policy – policy makers who are engaged and aware of the importance SME
transfer has on the local economy.
5. Knowledge Transfer – training and development for business advisers responsible
for business engagement on topics such as exit strategies, company valuation. In
addition, appropriate training support for businesses to learn of the importance of
planning for exit.
6. Sectoral Clusters – can offer accelerated growth which meets the needs of local
economic strategies.
7. Increase Awareness – of the economic benefits associated with supporting existing
businesses to remain going concerns compared to solely supporting business startup.
Together the primary and support functions can greatly enhance the economic potential of
regions and contribute to increasing the number of successful cases of business transfer.
Individual organisations have an essential role to play and the optimum results will be
achieved when all stakeholders (policy and organisations) adopt activities (or functions) that
best fit its capabilities and (funding) structure. This would benefit regions the most.
Therefore, it is recommended that local authorities are encouraged to focus on providing
impartial guidance and support as this fits their strengths and suits their profile. The same
goes for another pillar; grant support. Public sector organisations are best placed to offer
this type of support. On the other hand, we recommend that business incubation and
transfer support is best delivered through specialist organisations, such as business centres
and incubators. They could either be private or university connected and this is likely to
differ in each region. Regarding technological solutions, there are several initiatives from the
private sector in this field. Local governments could enter or support here to solve market
failure.
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A similar approach would be advised for supporting functions (activities). Activities such as
raising awareness and matching interested people to the right specialist organisation would
suit a governmental or semi-governmental body well. It goes without saying this is also valid
for the supporting functions around Engaged Policy; facilitating and enabling activities by
others in the field of business transfer.
The horizontal functions Knowledge Transfer (Training and Development) and Clustering
have elements that match well with the work of knowledge institutes like Universities and
Business Schools and their (related) incubators. Their expertise on education, training and
hands-on (incubator) support fit this important support element well.
The success of the integrated approach can be achieved through collaboration by
stakeholders, and an active coordination role preferably by local or regional government.
Some elements of the Regional Business Transfer Value Chain may already be in place, in
that case, all that is required is a re-evaluation of the current provision to take into account
some of the other recommendations made in this report. Once this has been done, good
practices from other countries can be introduced in new regions by the Receiver
organisation that best fits their needs. This way, all the different stakeholders could then
play their part by utilising their key features to their maximum potential for the benefit of
the region.
Although an integrated approach would be the most effective implementation strategy, in
practice, barriers could appear and prevent a full and effective coordinated effort. The suite
of ‘Good Practices’ covers a wide range of different elements and examples which could be
introduced on a modular basis. Earlier the 17 identified Good Practices were grouped
according to category (or theme). It is strongly recommended that these categories should
be used to match the practices with suitable Receiver organisations across regions,
according to the recommendations above.
By adopting a holistic, joined up approach, regions can benefit from the recommended
model and utilise it in a way that meets the cultural and economic needs of the region.
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Annex 1 – Full comparison of best practice characteristics
Palatinate
Example 1
Title of the
Good Practice
Offene Kompetenzregion Westpfalz (OKW)
(Open Competence Region Western Palatinate)
Topic and
Research and development project
categorisation
Location
Region Western Palatinate, Germany
University of Applied Sciences Kaiserslautern,
Date ‘Good
Practice’
commenced
November 2011
Date ‘Good
Practice’
concluded (If
relevant)
March 2015
Short
Summary
The research and development project “Offene Kompetenzregion
Westpfalz“ (Open Competence Region Western Palatinate) is one of the
projects funded within the tender “Aufstieg durch Bildung: Offene
Hochschulen”, conducted in cooperation of the University of
Kaiserslautern and the Kaiserslautern University of Applied Science.
The project generally aims at opening both participating higher
educational institutions (HEIs) for “non-traditional” target groups like
professionals and persons re-entering the labour market. Therefore
study programs will be (re-)designed with regards to the demands of
these students, e.g. by developing distance study programs on BA and
MA level.
Field of
activity
What is the
core
conceptual
background
of the
practice?
Research and development project: opening higher educational institutions
(HEIs) for “non-traditional” target groups like professionals and persons reentering the labour market.
Against the background, the project follows three development
strategies:
1) Change of learning culture (from teaching to learning)
In higher education as well as in professional and further education, new
learning concepts including the opportunities of Web 2.0 und social
media are increasingly important. These concepts also suggest a shift
from the dominance of teaching to a stronger focus on learning, thereby
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also addressing a set of demands and skills of lecturers. Consequently
the project focusses on the development of modern blended learning
formats, the promotion of individual learning strategies and new ways of
educational consulting. It moreover wants to enable both teachers and
learners regarding the use of new media to support learning processes.
2) Competency orientation (from content based to competency-based
curricula)
With respect to the Bologna reforms HEIs are obliged to adjust their
study programs and curricula, focusing on learning outcomes and on
opening them for professionally or informally qualified persons. Against
this background the development of elaborate competency assessment
and recognition systems is a fundamental part of the project activities. In
doing so, new methods of competency assessments have to be designed.
3) Networks (from institutions to educational networks)
The opening of HEIs for informally and non-formally qualified students
and the improvement of the permeability of higher education systems
requires stronger networking between the actors of the educational
system. Thereby the new paradigm of cooperative and collaborative
learning in educational networks will be promoted by the project
partners. In doing so, the creation of a sustainable regional educational
network in cooperation with representatives from local companies, the
chambers, and the government employment agency will be fostered.
Objectives
originally
intended
Objectives of the project are further networking of universities with
industry, associations and government to develop demand-driven
training programs and facilitating transitions between vocational and
academic education through the introduction of professional and family
accompanying study programs in basic and in-training area. The
increased competence orientation of study programs and the
establishment of an educational network are as much the focus of the
project such as the development of new teaching and Learning scenarios.
Target groups




Policy Impact
(if any)
1.
2.
Vocational Qualified, even without formal university entrance
Returnees to job with professional experience
Persons with family responsibilities
Potential students with professional experience who want to
study part-time
Educational policy
Grants on implementation of projects
What was the The project is still running.
key factor
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that made
this Good
Practice
successful?
Key
stakeholders
involved
University of Applied Sciences Kaiserslautern and the University of
Kaiserslautern
Other partners:





Virtual Campus Rheinland-Pfalz (VCRP)
Centre for Quality Assurance and Development
Chamber of Crafts of Palatinate
Chamber of Industry and Commerce for Palatinate
Employment Agency Kaiserslautern und Pirmasens
How was the
practice
funded?
Financial sponsor:
What were
the costs of
implementing
the practice?
Circa €4m over 3.5 years.
What are the
expected
benefits of
implementing
the practice?
The aim of the OKW project is the introduction of professional and family
accompanying study programs in basic and in-training area, adapted to
the needs of the economy as well as to the needs of new non-traditional
audiences.
Federal Ministry of Education and Research (BMBF) and European Social
Funds
Conditions for Competences of higher educational institutions (HEIs) developing study
potential
programs.
transfer
General
description of
main
achievements
Project is still operational
Additional
information
Project homepage
http://www.kompetenzregion-rlp.de/
Homepage University of Applied Sciences Kaiserslautern
http://www.fh-kl.de/fh/forschung/hw-projekte.html
Homepage Technische Universität Kaiserslautern
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http://www.disc.uni-kl.de/en/projects/offene-kompetenzregion/
Example 2
Title of the
Good Practice
Senior Expert Service (SES)
Foundation of German Industry for International Cooperation
Topic and
Non-profit organisation providing help for self-help to small and
categorisation medium-sized enterprises, public authorities, professional bodies and
business associations
Location
Germany and Rhineland-Palatinate (national and regional level)
Senior Experten Service (SES)
Stiftung der Deutschen Wirtschaft für internationale Zusammenarbeit
GmbH
Gemeinnützige Gesellschaft
Date ‘Good
Practice’
commenced
1983
Date ‘Good
Practice’
concluded (If
relevant)
n/a
Short
Summary
Senior Experten Service (SES) – the Foundation of German Industry for
International Cooperation – is the largest German volunteer placement
organisation for retired skilled and management professionals. It is a nonprofit organisation providing help for self-help since 1983, mainly in
developing, newly industrialised and transition countries, but also within
Germany.
Field of
activity
Rhineland-Palatinate
The offer is encouraged on collaboration with the Future initiative
Rhineland-Palatinate (ZIRP) and by the Ministry of Economic Affairs,
Climate Protection, Energy and Planning (MWKEL) of RhinelandPalatinate. SES turns with this specific volunteer initiative to young
Rhineland-Palatinate Companies looking at the stage of existence
consolidation for professional advice with questions on






sales and marketing;
finance;
controlling;
company organisation;
corporate development; and
succession planning
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What is the
core
conceptual
background
of the
practice?
More than 10,000 senior experts are registered at the SES from all
commercial, technical, craft, medical and social professions. They all
provide their expertise voluntarily. Since 1983, SES has performed more
than 26,000 operations in 160 countries.
Objectives
originally
intended
The services of SES are mainly aimed at small and medium-sized
enterprises, public authorities, professional bodies and business
associations, social and medical institutions as well as training
institutions. Close collaboration with other development organisations is
well established. In Germany, SES also champions schools, schoolchildren
and trainees.
The Mainz agency serves about 1,300 SES experts. Professionals within
its region have been taken over 3,000 SES assignments.
SES works according to demand and need. It responds to enquiries from
clients, checks their requests and concludes separate agreements with
the client and the Expert. The work of Experts assigned is of a
recommendatory nature. Sole responsibility for the implementation of
recommendations lies with the clients. Protecting the intellectual
property rights of third parties is one of the most important principles of
all SES assignments.
Policy Impact
(if any)
1. Business development
2. Grants on implementation of projects
What was the
key factor
that made
this Good
Practice
successful?
SES Experts can draw on many years of professional experience. They
pass on their knowledge on a voluntary basis and train fellow workers in
their subject fields in Germany and all over the world. They come
equipped with knowhow from around 50 branches of industry, along with
good social skills, readiness to adapt to the conditions prevailing in the
assignment country, and, in many cases, good foreign language skills. No
costs are incurred to them through working for SES. Insurance is also
taken care of.
Key
stakeholders
involved
SES is supported by the main associations representing German business:
the Federation of German Industry (BDI), the Confederation of German
Employers' Associations (BDA), the Association of Chambers of Industry
and Commerce (DIHK) and the German Confederation of Skilled Crafts
(ZDH). The activities of SES abroad are funded partly by the Federal
Ministry for Economic Cooperation and Development (BMZ). Projects in
Germany are supported by the Federal Ministry of Education and
Research (BMBF).
How was the
SES is supported by the main associations representing German business.
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practice
funded?
SES concludes the financial year 2012 with satisfactory results: income
currently amounting to €8.774 million balanced out expenditure, which
totalled €8.760 million. Turnover increased considerably since 2011: by
9.2 percent. The background to this development is pleasing assignment
figures, as well as generous support once again by both public and
private benefactors.
For instance, the Federal Ministry for Economic Cooperation and
Development (BMZ) provided sufficient funding for assignments abroad
in developing and newly industrialised countries – some €7.137 million.
Furthermore, the Federal Ministry of Education and Research (BMBF)
financed the VerA training initiative (€985,000), as well as the pilot
project coach@school (€212,000). In addition, the Ministry for Economic
Affairs of the Federal State of Rhineland-Palatinate paid for the
assignments carried out there in 2012.
Rhineland-Palatinate
For SES assignments under the initiative of Rhineland-Palatinate only
travel expenses incurred (50 cents / km) and a daily allowance of 15
euros. All other costs are borne by the state of Rhineland-Palatinate.
What were
the costs of
implementing
the practice?
Financial data 2012 (all values given in EUR ’000s)):
Revenues: 8 649
Donations: 23
Other income: 102
Total of income: 8 774
Project costs: 3 418
Staff costs: 3 827
Material costs: 1 515
Total expenditure: 8 760
Result of the year: 14
What are the
expected
benefits of
implementing
the practice?
All the tasks commissioned by SES act to help others to help themselves,
and represent the idea of transferring experience. Its aim is always to
improve prospects for the future, whether it is that of a small company
or of a young person.
Many older people do not want to simply withdraw into retirement, but
instead wish to share their years of professional experience and their
knowledge with others. So older and younger people can benefit from
this approach.
Conditions for Support by the main associations representing business and by the
potential
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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transfer
government.
Experts with many years of professional experience, who pass on their
knowledge on a voluntary basis.
General
description of
main
achievements
Passing on their professional experience and specialist knowledge on a
voluntary basis, upon ending their professional career: that is the job of
SES Experts. Close to 30,000 assignments all over the world make SES the
first port of call for retired specialist and management professionals.
Since 1983 SES has championed the cause of letting the younger
generation profit from the knowledge of older people, both abroad and
in Germany. That is what its motto stands for – future needs experience.
Over 2,800 assignments and more than 10,500 registered Experts at the
end of the year is the result of 2012. This demonstrates how SES has
further expanded its position as the largest German volunteer placement
organisation for retired skilled and management professionals.
In 2012 the Expert register developed in a very positive direction. Every
month an average of 100 new specialists signed up. Meanwhile we said
goodbye to 526 people during the course of the year. At the end of
December the number of registered Experts was 10,526. SES and its
clients had never had so many specialists at its disposal at the same time.
Additional
information
Annual report 2012 Senior Experten Service (SES)
http://www.ses-bonn.de/en/news-press/press-releasespublications/annual-report.html
Short information
http://www.ses-bonn.de/en/news-press/press-releasespublications/short-information.html
Senior Experten Service (SES) regional agency Mainz
http://www.ses-bonn.de/kontakt/bueros-in-deutschland/mainz.html
SES homepage
http://www.ses-bonn.de/en/home.html
Example 3
Title of the
Good Practice
“nexxt-change” enterprise e-platform
Topic and
e-platform for buyers and sellers for business succession
categorisation
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
42
Location
Berlin
Date ‘Good
Practice’
commenced
2006
Short
Summary
E-platform of the Federal Ministry of Economics and Technology, KfW
banking group, German Chamber of Commerce and Industry, Central
Association of craft, Federal Association of German Cooperative banks
and Raiffeisen bank and German Savings Bank and Giro Association in
collaboration with partners in the action "nexxt“. The target is to bring
succession interested entrepreneurs and founders of new businesses
together. The Online Exchange nexxt-change is a central marketplace for
companies in the context of appropriate business succession. The free
internet platform offers:




Date ‘Good
Practice’
concluded (If
relevant)
n/a
wide range of intermediary businesses
qualified support by competent regional partners
automatic notification of appropriate new advertisements
(subscription function by e-mail or RSS feed)
user-friendly interface
Each user has the possibility to investigate in the existing data base and
to response anonymous to one of the listings. Alternatively trough an
online form an own advertisement can be created.
Field of
activity
Germany´s biggest e-platform for business succession , currently 7.456
properties for sale and 2.851 looking for buy (status quo 12.06.2013)
What is the
core
conceptual
background
of the
practice?
Many self-employed entrepreneurs look for a successor, as successful
business transfer to a family member or employees is not possible. At the
same time, there are many committed entrepreneurs and start-ups who
would like to take over or continue existing companies. “Nexxt-change”,
the e-platform for enterprises (www.nexxtchange.org), provides the
optimum solution for both groups.
The successful generation change is not only very important for
companies, but also economically of paramount importance. Many years
proven structures, experience and know-how are passed to the next
generation of entrepreneurs. The survival of many businesses and
millions of jobs in Germany are secured. The largest national enterprise eplatform “nexxt-change” provides active support in the succession
process.
Objectives
originally
The nexxt-change business-platform has the objective to support actively
the generational change in SMEs and wants to bring succession interested
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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intended
Policy Impact
(if any)
entrepreneurs and founder of new businesses.
1. Business Development
2. Grants on implementation of projects
What was the
key factor
that made
this Good
Practice
successful?
Since 2006 more than 8.600 SMEs were supported to find a successor for
their businesses. Since the re-launch of the website in 2011 there are per
month approximately 2.7million page views. Since it started, the eplatform published 81,433 advertisements of buyers and sellers.
Key
stakeholders
involved
820 regional partners who are specialized staff from chambers of industry
and commerce, local cooperative banks and savings banks.
Regional partners are especially:







Chamber of Crafts
Chambers of Commerce and Industry
Cooperative banks and Raiffeisen banks
Savings banks
Advisory firms in the cooperative banking group, the Savings
Banks Finance Group and crafts organisations
Economic development agencies of the German Association of
Economic Development and Development Capital Association
Productivity and Innovation Centres of German Business of the
Federal states
The task of the regional partners is the mediation between supply and
demand, to establish contacts between buyers and sellers and thus to
accompany a transfer process actively There is also the possibility that
advertisers are advised by regional partners on issues of succession. The
type and content of this consultation are not standardized and vary
depending on regional partners.
How was the
practice
funded?
The practice “nexxt-change” is a funded initiative of the Federal Ministry
of Economics and Technology, KfW group of bank, German Chamber of
Commerce and Industry, Central Association of craft, Federal Association
of German Cooperative banks and Raiffeisen banks and German Savings
Banks and Giro Association.
What were
Costs of both supporters (Federal Ministry of Economics and Technology,
the costs of
KfW group of bank) €246,432
implementing Staff costs of all regional partners: €6,370,864
the practice?
(All amounts from year 2011)
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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What are the Benefit for users:
expected
 Search free database for Business Succession
benefits of
 Ads on a reputable site
implementing
 Consulting and coaching by competent regional partners
the practice?
 Matching of advertisements
 Contacts between advertisers
 Lectures, events and workshops, publications
 Access to networks (e.g. between the nexxt-change regional
partners, chambers, banks and tax advisors)
Benefit in general:







Bringing transferors and transferees together
Obtaining of jobs
Increasing the amount of successful business transfers
Initiating of sale transactions
Consulting offers of the regional partners
Raising awareness of the issue of business succession
Integrity and neutrality
Conditions for Fulfilment of evaluation criteria of the comprehensive comparative EUpotential
study “Markets for Business Transfers Fostering Transparent
transfer
Marketplaces for the Transfer of Businesses in Europe” from 2006. For
example:







General
description of
main
achievements
comprehensive national platform and prevention of splintering
into several exchanges
neutral and trustworthy operator
advertising, public awareness campaigns and dissemination of
relevant information about business succession for a good
reputation in the target group
protection of the identity of advertisers (anonymous contact
requests)
advertisements should have a certain minimum quality, which can
be ensured by a regular review of the adverts
E-platforms should also offer other services such as negotiation
support and counselling and support services
a systematic monitoring and surveillance, the success of missioncritical factors should be ensured
About nexxt-change a total of 1,312 negotiations in 2011 could be
achieved. This leads to about 10,500 secured jobs. If you consider the
estimates and forecasts for the annual size of the business transfer
market for family external solutions, therefore about nexxt-change 10%
of all relevant business successions were processed. Users assess the
added value by nexxt-change rather positive. The transferor and
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
45
transferee thought to 41% and 35% that they wouldn´t have found a
suitable buyer / seller without next change. Considering the successful
transferor and transferee, this figure rises to 68% (the transferor) and
71% (transferee). Another benefit of the e-platform is to initiate sales
negotiations. Here 60% of transferees and 69% of transferors think that
without nexxt-change they conducted less sales negotiations. Nexxtchange serves its purpose to initiate sales negotiations and to bring
relevant parties together. Nexxt-change succeeds to obtain jobs costeffectively.
Additional
information
Leaflet “nexxt change” enterprise e-platform (German)
https://www.nexxt-change.org/Service/Hilfe/ (click on the right side
“Nexxt-change Flyer”
Attica
Example 1
Title of the
Good Practice
Formation of web site for business transfer
Topic and
Support to SME
categorisation
Location
Athens, Greece
Date ‘Good
Practice’
commenced
October 2012
Short
Summary
A website was developed in order to support business transfers
Field of
activity
Business Valuation and Transfer
What is the
core
conceptual
background
of the
practice?
To provide valid information about the actual value of a firm
Objectives
In order to assess the cost of transfer, an actual estimation of the value
of the firm was necessary
Date ‘Good
Practice’
concluded (If
relevant)
n/a
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
46
originally
intended
Policy Impact
n/a
(if any)
What was the A relevant set of possible buyers is available for doing business
key factor
that made
this Good
Practice
successful?
Key
stakeholders
involved
In order a business transfer be held a seller and a team of possible buyers
An expert consultant validated the offers and worked as intermediate to
the process
How was the
practice
funded?
A private equity fund built a company to run the project
What were
the costs of
implementing
the practice?
The initial investment is at the range of 120,000 € and an annual
operating cost of 50,000 €
What are the
expected
benefits of
implementing
the practice?
Monetary benefits
If a business transfer occurs there two main benefits
From the buyer’s side: Identifies the market share and opportunities
related to the business. This most of the times boosts business activity
and economic performance
From the seller’s side: An important amount of capital enters the
business making available a series of crucial
Social benefits: Prevention of business transfer failure, allows
employment and business activity indexes to be positively affected
Conditions for Trust and open communication between the two parties
potential
transfer
General
description of
main
achievements
Members login on site continuous to increase
Due to the local economic crisis, there are more sellers than buyers!
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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Additional
information
Website
http://www.bizmarket.gr/biz/sell/
Consulting Services
http://www.bizmarket.gr/symvoules.html
Example 2
Title of the
Good Practice
Corallia Clusters Initiative
Topic and
A business cluster centre
categorisation
Location
Amarousio, Athens, Greece
Date ‘Good
Practice’
commenced
2006
Short
Summary
Corallia Clusters Initiative is the first organisation established in Greece
for the structured and systematic management and development of
innovation clusters, with the strategic aim to develop cohesive and
productive innovative ecosystems within which actors operate in a
coordinated manner, in specific sectors and regions of the country, and
where a competitive advantage and export orientation exists.
Date ‘Good
Practice’
concluded (If
relevant)
n/a
In those clusters, Corallia acts as the Cluster Facilitator implementing
specific support actions which involve all innovation ecosystem actors,
including industry, universities, research centres, regional and central
governmental agencies, venture capital, business angels, banks,
infrastructure providers, media, suppliers and buyers, with the aim at
boosting competitiveness, entrepreneurship and innovation.
Field of
activity
Transfer business by setting a suitable environment of Business Lifecycle
development
What is the
core
conceptual
background
of the
Today, Corallia has developed and supports the growth of three highlyspecialised cluster initiatives in Greece, in knowledge-intensive thematic
sectors, namely the mi-Cluster (nano/microelectronics-based systems
and applications | www.mi-cluster.gr), the si-Cluster (space technologies
and applications |www.si-cluster.gr) and the gi-Cluster (innovative
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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practice?
gaming technologies and creative content | www.gi-cluster.gr).
Objectives
originally
intended
Corallia, a clusters facilitator as a one-stop-shop, through which the
entire innovation network gains access to unique business opportunities
and added-value services.
Supports new venture creation, where students and entrepreneurs "tobe" can apply innovative ideas and set-up start-ups.
Business Development
Grants on implementation of projects
Policy Impact
(if any)
What was the
key factor
that made
this Good
Practice
successful?
Expands the innovation-knowledge horizon with a thorough training
program, through which members of the clusters gain best-in-class on
topics ranging from technical skills on project management, to
negotiation tactics and business plan development.
Key
stakeholders
involved
Business owners who want to develop a new idea into business
How was the
practice
funded?
By a major private investor in Greece and a hedge fund
What were
the costs of
implementing
the practice?
More than 3m € (unofficial estimation)
What are the
expected
benefits of
implementing
the practice?
Innovation and new management team that foster the development of
business
Eases the innovation gap through complementarities and partnerships
among cluster-members as well as between cluster-members and
national and international organisations, including world-class innovation
centres of excellence, in Europe, USA, Japan.
Turnover 350 M€ Exports: 80% (2008)
Conditions for An innovative business idea and appetite for work
potential
transfer
General
description of
main
The results achieved since the creation of the "Corallia" initiative in 2006
are very promising.
The total cluster members grew from 13 at the beginning to 132 ( 68
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
49
achievements
industrial, 41 academic and 23 others).
The preliminary results of the project in the period 2008-2010 show that
the companies belonging to the cluster marked a turnover growth rate of
266%, an employment growth rate of 63% and an export growth rate of
119%.
The investments made by private investors rose by 438%, exceeding
€12m with a forecast to double this figure by next year. Patent
applications rose by 105%, surpassing 100 applications, with a forecast of
a further increase by 60% in 2013 and the cooperation of the academic
and research institutions with the industry grew by 228%, surpassing
110, with a forecast of further increase by 40% in 2013.
Additional
information
Project of the Week: "Corallia" Clusters Initiative
http://ec.europa.eu/regional_policy/newsroom/detail.cfm?id=193
Directorate Gernal for Internal Policies, Committee on Industry, Research
and Energy (ITRE)
http://www.europarl.europa.eu/document/activities/cont/201305/2013
0524ATT66730/20130524ATT66730EN.pdf
Example 3
Title of the
Good Practice
Incubator Development a framework of business creation
Topic and
SME support
categorisation
Location
Lavrio, Attiki, Greece
Date ‘Good
Practice’
commenced
1992 ( space construction)
Short
Summary
National Technical University, a leading institution of research in Europe
developed an incubator as a non-profit organisation for developing
research projects into business
Field of
activity
Business Development, Innovation and business renewal
What is the
core
The Incubator of BIC of Attica in Lavrio Technological Cultural Park offers
services to its enterprises-tenants in three levels:
Date ‘Good
Practice’
concluded (If
relevant)
n/a
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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conceptual
background
of the
practice?
1. Provision of basic operating services






Personal furnished workplaces for 1-6 persons
Common use areas (meeting room, reception, cuisine, secretariat
etc.)
Meeting room in BIC of Attica headquarters in the centre of
Athens
Secretariat
Telecommunication infrastructure (call centre, fax, internet)
Basic consulting services
2. Networking with experts of specific fields of activities (lawyers,
accountants, graphic designers etc.)
3. Networking with organisations offering services of added value



Access to funding initiatives (preparation of proposals in national
and European programs, Venture Capital, Banks, Private Investors
etc.)
Marketing services (marketing plans, collaboration with
enterprises specialised in sales promotion etc.)
Knowledge management services (networking with knowledge
related institutions (universities, Technological Educational
Institutes, Research centres etc.) for utilizing services and
developing collaborations.
Objectives
originally
intended
Utilization of space and the potentiality of Greek researchers
Policy Impact
n/a
(if any)
What was the Development of new firms
key factor
that made
this Good
Practice
successful?
Key
stakeholders
involved
Natural Technical University, Municipality, Greek Government
The Athens Chamber of Small & Medium Sized Industries, private banks,
Universities, the Municipality of Piraeus and the Hellenic Organisation of
Small & Medium Enterprises and Handicraft are some of the main
shareholders.
How was the
practice
In 1994, a funding programme was approved to create the Lavrion
Technological and Cultural Park (LTCP)
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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funded?
What were
the costs of
implementing
the practice?
Total cost: about €7.8 million covered by EU and national funds
What are the
expected
benefits of
implementing
the practice?
Business Transfer and Knowledge development
Conditions for Working and collaborating on projects the members of the incubator can
potential
apply these innovations to growth business formatting valid and reliable
transfer
business plans and ensuring longevity
General
description of
main
achievements
Numerous projects implemented within the incubator, led the creation
of new business lines, or even better to the creation of new business
Additional
information
Description of the incubator
The incubator mainly helps universities commercialize know-how and
helps companies to generate spin-offs. The incubator is currently
assisting three firms; operating at a 25% rate of its capacity, while several
admission requests are under examination to cover the remaining
positions. The most attractive characteristics are considered to be: the
flexible rental agreements, as well as the availability of professional
services in low charges through the BIC-of-Attica.
http://www.incubator.gr/servicesen.html
One example of many projects BIC managed to participate
http://www.guarden.eu/bicattika/
Centru Region
Example 1
Title of the
Good Practice
Center for Business, Technology Transfer and Business Incubator
Topic and
Economic development of Brasov Growth Pole and economic
categorisation development of the region through the support of the economic sectors
with growth potential and stimulate research in innovation.
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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Location
Brasov, Romania
Date ‘Good
Practice’
commenced
2013
Short
Summary
The present project aims to:



Date ‘Good
Practice’
concluded (If
relevant)
2015
Support the development of new business;
Encourage the transfer of know-how between research and
development structures and business;
Supporting business mediation between companies. For this
purpose, the Business Centre will have a component dedicated to
exhibitions, conferences, professional meetings nationally and
internationally.
Field of
activity
Public municipality involvement in the SME support/Entrepreneurship to
create a competitive business environment in Brasov.
What is the
core
conceptual
background
of the
practice?
The Project Centre for Business, Technology Transfer and Business
Incubator will be implemented with structural funds, the contract has
been signed this year and it has started the implementation of the
project. The project it has been designed to accommodate multiple
functions: information centre, business support and innovation in areas
identified as priorities, professional services, laboratories (testing,
certification, and approval), multimedia space, offices companies, and
space to conduct events, seminars and exhibitions, administrative
spaces.
The Brasov City vision for the Centre functions was to strengthen
economic and social development in Brasov and Brasov Growth Pole by
supporting entrepreneurship and innovation in economic sectors with
the greatest potential and connecting them to the global market.
The Business Centre will bring together 3 functions:



Business Incubator;
Technology Transfer Centre;
Exhibition and Conference Centre.
Benefits for incubated companies:




Assistance for the pre-incubation period (preparing a business
plan, networking etc.)
Access to the office space equipped with furniture and IT
equipment;
Access to the meeting rooms, classes and events;
Access to the utilities and telecommunications services;
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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




Objectives
originally
intended
Policy Impact
(if any)
Assistance and advice for specific business needs during the
incubation;
Participation and organisation of courses, fairs, exhibitions and
other promotional activities;
Access to the business networks - other incubated companies
(potential customers / suppliers);
Participating in the events organized in the Centre;
Post-incubation services - promoting the company, participation
in events, etc.
The project is initiated by Brasov municipality and the objective is to
sustain the development of the business sector.
1.
2.
3.
Business Development
Energy efficiency
Sustainable development
What was the
key factor
that made
this Good
Practice
successful?
The contract for this project was just signed and it will be implemented
until 2015.
Key
stakeholders
involved
Municipality; Private sector/business sector; University.
How was the
practice
funded?
The project is financed through structural funds: 50% structural funds
and 50% Brasov Municipality.
What were
the costs of
implementing
the practice?
€15,778,519.17 (unofficial)
What are the
expected
benefits of
implementing
the practice?
Economic benefits:
An important key factor for this project will be the implication of the
Brasov Municipality and the collaboration between the public and
private sector and Brasov University.




Designing and building an infrastructure to support complex
business;
Creating an environment conducive to the development of
companies in the priority areas;
Organise at least 5 annual events to promote products / services
in priority areas, which are based on research and innovation;
Creation of approximately 128 permanent new jobs in the
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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



incubated companies;
Attracting and locating of up to 20 companies of various sizes;
Attracting and services provision for the establishment of a
number of start-ups and young professionals 30 freelancers;
Develop and deliver a comprehensive portfolio of services
dedicated to local companies and regional business environment;
Of the incubated companies operating at least 50% will continue
their economic activity in Brasov, keeping the results achieved at
the end of the incubation period for a period of at least 3 years
post-incubation.
The proposed project is generating income. It is estimated that the
project will generate revenue from the following activities:






Incubating firms;
Renting laboratories;
Hire of exhibition;
Conference hall;
Renting co-working;
Renting with complementary functions.
Conditions for Will be determined at the end of the project, however, a success
potential
implementation of the project would be a reasonable measure.
transfer
General
description of
main
achievements








Additional
information
Entrepreneurship development in the Growth Pole Brasov;
Support the development of viable private companies working in
areas with high added value;
Creating jobs in the Growth Pole Brasov;
Development of trade relations in the Growth Pole Brasov and in
the Centre region;
Internationalization of Brasov economy;
Organizing business events that will raise awareness of Brasov
area;
The development of business tourism in Brasov area;
Improved quality of life in the Brasov.
Because the implementation of the project has just started there is no
website for promoting the project at this moment.
Example 2
Title of the
Good Practice
Romanian Business School Foundation of Brasov Chamber of Commerce
and Industry
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
55
Topic and
Continuing education for business.
categorisation
Location
Brasov, Romania
Date ‘Good
Practice’
commenced
1998
Short
Summary
The Chamber’s mission, as representative of Brasov Community, is to be
the main promoter of local, regional and national economic
development, aiming at becoming the first choice partner and
consultative pole, by providing professional tailored services for current
and future commercial partners, in a competent, impartial and efficient
manner.
Date ‘Good
Practice’
concluded (If
relevant)
n/a
The Chamber’s purpose is to participate in the development of a
favourable business environment and to support its members in their
relations with local and central public authorities. In order to achieve this
goal, the Chamber will promote a coherent economic and social
development policy of Brasov County, by means of three strategic
objectives:



Representing and protecting the businesses interests in their
relations with local, national, international institutions
institutional level: economic and administrative, local, national
and international;
Performing high quality services, based on satisfying specific needs
of the business environment;
Contributing to institutional development by: setting up new
organisations managed by the Chamber and improving those
already existing. Its affiliation to a strong Chambers system and its
active involvement in partnerships with other organisations
supports local economic growth.
Brasov Romanian Business School Foundation of Brasov Chamber of
Commerce and Industry is a non-governmental organisation that aims to
support the continuing education for business and its desire to become a
social resource binder for business of Brasov county and region but also
a platform for training, information and dialogue for all who can build
something in Brasov county.
Field of
activity
Education for business.
What is the
In order to accomplish its mission and purpose, the Chamber aims at the
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
56
core
conceptual
background
of the
practice?
following specific objectives:













Chamber’s recognition and consolidation as a dialog partner in its
relationship with economic, political, and social decision-makers,
as well as with non-governmental organisations and other
institutions of civil society;
Diversifying the means and ways of regular consultation with its
member companies in view of discussing their professional and
economic difficulties and establishing the Chamber’s strategies of
promoting and supporting its members;
Increasing its representative role, thanks to the number and
quality of its members;
Active participation in economic regulation making, in view of
creating a sound economic environment based on clear, equitable,
coherent and rational legislation;
Strengthening the Chamber’s contribution to the creation and
maintenance of a competitive business environment; supporting
the increase of products and service competitiveness of local
companies;
Guiding and supporting businesses for quality assurance of their
products and services, environmental protection and know-how
protection issues;
Involvement in setting ethical standards in business for safe
commercial transactions and fair competition on the market;
Performing company promoting activities;
Providing up-dated tailor-made services with optimal price-quality
ratios;
Active participation in lobbies supporting the Romanian Chamber
System to become the representative of the Romanian
Entrepreneurs, with Romanian State Recognition;
Intensifying cooperation with local institutions and authorities in
order to start and implement sustainable development projects;
Expanding relationships with other foreign chambers, institutions
and similar organisations, in order to improve the Chamber’s
activity as a result of experience exchange and partnership
establishments;
Permanent concern to attract funding for the Chamber’s growth.
In the 12 years of activity of the Business School there were organized
courses/ specialization in the areas of interest to the local business
communities (entrepreneurship education, business management,
project management, computer operator, human resource management
practitioners, sales techniques, the art of negotiation, personal
communication).
Between 2006 and 2010 a total of 682 participants have benefited from
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
57
the 43 courses having authorized courses on the following topics:





Agent (broker) real estate;
Management company (entrepreneurship education);
Land surveyor surveying technician;
Electronic computer and network operator;
Communication in English (level: beginner, intermediate,
advanced business).
The Brasov Business School was concerned with strengthening schooleconomic partnership in order to ensure the effectiveness of education
and training in relation to the labour market demand.
Objectives
originally
intended
Policy Impact
(if any)
Sustain the development of the business sector.
1.
2.
Business development
Sustainable development
What was the High education for the business sector.
key factor
that made
this Good
Practice
successful?
Key
stakeholders
involved
Chamber of Commerce and Industry of Brasov and of the Brasov county;
Business sector.
How was the
practice
funded?
Structural funds and funds from the Chamber.
What were
the costs of
implementing
the practice?
Not known.
What are the
expected
benefits of
implementing
the practice?
More trained people from the business sector and more people trained
that want to start a business.
Conditions for Willingness to learn and implement the learned lessons.
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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potential
transfer
General
description of
main
achievements
Numerous courses implemented and various people trained in the
business field. Achievement of authorized courses like:
Additional
information
Website of Brasov Chamber of Commerce and Industry





The challenge to be a manager;
Negotiation and sales;
Marketing;
Successful management teams;
Financial management.
http://www.ccibv.ro/
Website and Facebook link of Brasov Business School
http://www.srafbv.ro/1/
https://www.facebook.com/pages/Scoala-Romana-de-AfaceriBrasov/135691186496311?fref=ts
Catalonia
Example 1
Title of the
Good Practice
Business Continuity Plan (Plan de Continuidad Emresarial)
Topic and
Support to SMEs in the transmission of businesses
categorisation
Location
Spain (ES 1-7)
Date ‘Good
Practice’
commenced
May 2011
Short
Summary
The plan offers advice to secure the viability of business retransmissions,
both to the owners who want to sell the business and to the potential
buyers or entrepreneurs who want to continue the activity.
Field of
Family transfer/sale of business
Date ‘Good
Practice’
concluded (If
relevant)
n/a
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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activity
What is the
core
conceptual
background
of the
practice?
To offer advice and custom to secure the viability of business
transmission, both to the owners who want to sell the business and to
the potential buyers or entrepreneurs who want to continue the activity.
Objectives
originally
intended
National Broadcasting Platform, which provides information on vacancies
and applications currently available, as well as extensive information on
procedures, legal, tax, labor, etc. related to the sale of businesses.
National Network of Transmission Business Centers. The transfer of
business centers are specialized cabinets in the sale of companies
located in the territories of Chambers of Commerce, providing value
added services to stakeholders in all of the national territory.
The project followed the following work plan:





Policy Impact
(if any)
Selection of companies
Diagnosis of the buying and selling process
Preparation of all the documentation
Negotiations and Closing
Business transfer
Framework Plan for Industrial Policy 2020

The policy is given a prominent position among as a support
programme to entrepreneurs as part of the Spanish Ministry’s
Framework Plan for Industrial Policy.
What was the
key factor
that made
this Good
Practice
successful?
Important cooperation between the Spanish government and the
Chambers of Commerce, ensuring a homogenous implementation across
the country, deploying a network of similar structures with comparable
support capacities.
Key
stakeholders
involved
National government, Council of Chambers of Commerce, Chambers of
Commerce, SMEs nationwide
How was the
practice
funded?
The practice was funded with national funds, supplemented by cofinancing from ENISA, a public company whose mission is the creation
and consolidation of Spanish businesses.
What were
the costs of
€2,307,680.45
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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implementing
the practice?
What are the
expected
benefits of
implementing
the practice?
The expected benefits of the practice are the successful transfer and
consolidation of SMEs, in order to preserve businesses and employment
in the event of a change of ownership. As the initiative is based on a
previous pilot with 11 Chambers of Commerce and a budget of 600.000,
it is considered that this enlargement of the service will prove just as
successful.
Conditions for No particular conditions. Should be implemented by structures with
potential
access to SME networks that can reach a large stakeholder group, as the
transfer
actions as a cross-sectoral approach is obligatory.
General
description of
main
achievements
In the first 6 months alone, the program reached out to over 800 SMEs,
conducted diagnostics with over 100, and, in appropriate cases,
proceeded to prepare the necessary documentation with over 50 such
SMEs.
Additional
information
Guide for the transmission of Businesses (PDF: Spanish)
http://www.plancontinuidadempresarial.es/Documentos/Guia_Transmis
iones_VG_web.pdf
Websites
http://www.plancontinuidadempresarial.es/ (Spanish State)
http://www.cambrabcn.org/competitivitat/gestio_projectes/programa_c
ontinuitat_empresarial (Barcelona Chamber of Commerce)
Press Release from the Spanish Ministry for Industry, Tourism and
Commerce (PDF: Spanish)
http://www.minetur.gob.es/eses/gabineteprensa/notasprensa/documents/npplancontemp230511.pdf
Example 2
Title of the
Good Practice
Centre de Reempresa de Catalunya
Topic and
categorisation
Business transfer
Location
Catalonia (ES51)
Date ‘Good
Practice’
July 2011
Date ‘Good Practice’
concluded (If
n/a
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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commenced
Short
Summary
relevant)
The Centre de Reempresa de Catalunya was launched in 2010 and is
supported by the Catalan Employers Association (Cecot) and the Private
Foundation promoting self-employment in Catalonia (CP’AC). It is cofinanced by the Catalan Government and the European Regional
Development Fund (ERDF) from the European Commission. This initiative
works as a non-profit Public Private Partnership.
Reempresa is the focal point of data and knowledge for the matchmaking
process. It supports business owners to prepare the business transfer with
its own methodology and also potential entrepreneurs (buyers) to find a
new business to buy. Reempresa also organize information programs to
highlight the benefits of the transfer business phenomenon and training
programs.
Field of
activity
Business transfer. Take over. Entrepreneurship.
What is the
core
conceptual
background of
the practice?35
One third of Europe’s entrepreneurs will withdraw from business during
the next ten years. It is estimated that, every year, this will affect up to
690,000 enterprises, most of them small or medium-sized, and 2.8 million
jobs. There is no complete and comparable data on business transfers for
all European countries, but the information available from individual
countries support the EU estimates and indicates a large potential for
business transfers.
Latest studies show that around 120,000 enterprises and 258,000 workers
may be involved in transfer business processes in the next ten years in
Catalonia (650,000 and 1,400,000 in Spain). In a country where 99% of
companies are SMEs, the lack of a structured market for the transmission
of SMEs and the lack of an organisation responsible for monitoring the
market, results in a loss of economic assets, a high mortality rate of
companies and loss of jobs.
In 1994, the European Commission published some recommendations
concerning business transfer where, basically, they invited members to
promote initiatives of awareness and training, as well as a better
environment in terms of financing, legality and taxes.
Although these measures have had a poor and uneven application among
members, the European community continue to understand that it is
necessary to establish mechanisms to facilitate the continuity of those
companies that have no successor. Proof of this commitment is reflected
in the last “Small Business Act” (SBA) which requires that members need
to take measures to facilitate such transfers.
35
Context of implementation and main issues foreseen
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According with that, Reempresa observed that many European
governments and the European Union institutions had launched some
initiatives to improve and facilitate the transfer of businesses and that
they have got good results in terms of growth, employment and
sustainability. That is why Cecot and the cp’Ac Foundation decided to
implement the Centre de Reempresa de Catalunya, to facilitate the
transfer of businesses in our country.
Transferring businesses is a new way for growth that has been
implemented around the world and which offers a wide number of
advantages and benefits. To do so, Reempresa strives to consolidate a
new model of entrepreneurship which encompasses businesses, business
owners, and entrepreneurs, and advocates for transferring companies to
new owners in order to pass along business success in Catalonia.
Objectives
originally
intended
Reempresa began with the desire to stimulate and regulate an incipient
market that was fragmented and that was hampering mobility and
improving of competitiveness.
Its goal is to establish a general system by which an employer who wants
to transfer his business to another will have access to a unique Market
Place with expert advice and specialized training, and also where he will
find the support of public administration and economic operators.
The objective of Reempresa is to get more resources and awareness in
maintaining and strengthening functioning businesses instead of always
feeling compelled to create new companies from scratch.
Policy impact
(if any)
ERDF – Provides 50% of the co-financing for the initiative
What was the
key factor that
made this
Good Practice
successful?
The key factor of this project is the Public-Private partnership, which has
assured the collaboration of different public authorities. Also, that the
Centre de Reempresa de Catalunya is an initiative launched by an
Employers Association (www.cecot.org), connected with the daily reality
of Catalan Companies, with the collaboration of a foundation specialized
in entrepreneurship and self-employment.
Key
stakeholders
involved




How was the
practice
funded?
Patronal Cecot (www.cecot.org)
Fundació cp’Ac (www.autoocupacio.org)
Government of Catalonia - Department of Economy and
Knowledge of Catalonia (Generalitat de Catalunya)
European Commission – Regional Policy (ERDF)
Public Private Partnership project funded 50% by the European Regional
Development Fund (ERDF) from the European Commission.
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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What were the The project “Reempresa” have a total cost of €4,017,754, with the EU’s
costs of
Regional Development Fund contributing €2,008,877 for the 2009 to 2015
implementing programming period.
the practice?
What are the
expected
benefits of
implementing
the practice?
















Facilitate the transfer of businesses.
Reduce businesses’ tax mortality.
Avoid employment’s destruction.
Make easy self-employment projects.
Creation of unique Market Place.
Transparent and structured Market.
Help the survival of businesses.
Raise awareness among sellers and buyers.
Raise awareness among public authorities and socioeconomic
entities.
Centre de Reempresa de Catalunya as a neutral and trustworthy host
organisation.
Avoid Market’s fragmentation.
Improve mobility.
Ensure transfer-friendly tax systems.
Ensure adequate financing facilities.
Ensure transfer-friendly legal and labour environments.
Ensure political attention to both business transfers and start-ups.
Conditions for
potential
transfer
n/a
General
description of
main
achievements
The main achievement of Reempresa is the creation of a structured and
transparent Market Place where sellers and buyers can match its interests
and where they can find advice and training when transferring businesses.
Many businesses fail in the transfer phase because the transfer has not
been sufficiently prepared. Now, with Centre de Reempresa de Catalunya,
sellers and buyers have access to specialised advice and methodology to
define the best procedure to transfer the company and to get warranties
to assure the success of the operation.
One of the major problems in business transfers is that the planning for
the transfer process has started too late. Reempresa has been raising
awareness about the need to prepare for the transfer a long time in
advance and has provided information to owners and successors of the
specific steps they need to consider.
In order to assure political attention to the transfer business
phenomenon, as they do with start-ups, and to assure market access
around Catalonia, Reempresa has created a network of collaborators with
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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public and private authorities. By collaborating with local federations and
other business organisations, Reempresa has assured market access for
most companies and also has avoided market fragmentation. By
collaboration with public authorities, Reempresa is assuring political
attention, but also that its local advisors/consultants (those helping
entrepreneurs create their companies) are trained about the business
transfer process and have access to Reempresa’s resources like the
methodology and the e-platform (www.reempresa.org)
As the European Commission has recommended, databases (market
places) should not be fragmented. With its network of collaborators, both
public authorities and private entities, Reempresa has assured that its
Market Place remains unique in Catalonia and, even more, that it is
managed by a neutral and trustworthy organisation. Reempresa’s Market
Place (www.reempresa.org) ensures market access, anonymity and
information quality.
Reempresa has assured continuity to more than 95 companies, meaning
more than 270 direct jobs and €4,801,000 on deals. (May 2013)
Additional
information
Seller’s guide
http://www.reempresa.org/documents-reempresa/_gJrNqMBcqiQadHCrzblEnWaK8RuacoZ
Buyer’s guide
http://www.reempresa.org/documents-reempresa/_gJrNqMBcqiQadHCrzblEnWaK8RuacoZ
Project of the Week” of the European Commission’s Directorate General
for Regional Policy – Inforegio
http://ec.europa.eu/regional_policy/newsroom/detail.cfm?LAN=ES&id=1
99&lang=en
Euronews – Business Planet
http://www.euronews.com/2013/04/05/barcelona-business-tool-helpscompanies-change-hands/
Example 3
Title of the
Good Practice
Family Business Workshops
Topic and
Support to SMEs
categorisation
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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Location
Date ‘Good
Practice’
commenced
Barcelona, Catalonia (ES511)
January 2000
Date ‘Good
Practice’
concluded (If
relevant)
n/a
Short
Summary
Because of the specific needs of Family run businesses, the Barcelona
Chamber of Commerce regularly hosts workshops in order to assist family
SMEs, help them access solutions to their particular challenges and help
consolidate and/or transfer activities.
Field of
activity
Family transfer/SME support/Entrepreneurship
What is the
core
conceptual
background
of the
practice?
Family run businesses are subject to their own particular problems which
are not common to other types of SME management structures. They are
confronted with different challenges, such as professionalization, transfer
of ownership, or conflict resolution in a context which is often in need of
delicate management in order to ensure successful outcomes. The
workshops address various themes related to these issues, and provide
platforms for SMEs to present their challenges and needs in order to
encounter solutions.
Objectives
originally
intended
The objective of the service is that family businesses have access to
support services which are specific to their needs, while also having an
opportunity to network with SMEs in similar situations. An expert hosting
the event will discuss themes specific to family run businesses and then
encourage participation from the different members present in order to
disseminate solutions and workshop ideas.
Policy impact
(if any)
n/a
What was the
key factor
that made
this Good
Practice
successful?
The key factor in making this practice successful is the intense
interactions that occur between SMEs during these workshops. The
attendees suggest solutions to challenges presented by SMEs, sharing
their own experience to the benefit of the other participants.
Key
stakeholders
involved
Barcelona Chamber of Commerce, Family Business Associations, SMEs
How was the
The services are partly subsidized by the Barcelona Chamber of
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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practice
funded?
Commerce through their own funding mechanisms, but for the most part
the services are paid for by contributions from the SMEs attending the
workshops throughout the year.
What were
the costs of
implementing
the practice?
n/a
What are the
expected
benefits of
implementing
the practice?
The expected benefits are the consolidation and growth of family run
businesses, coupled with a smooth transition from one generation to the
next, ensuring Catalan jobs are not lost through the mismanagement of
viable businesses, and encouraging growth of a business group that
accounts for the majority of SMEs in Catalonia.
Conditions for The services could potentially be transferred to any business intermediary
potential
organisation that has sufficient capacities and the required know-how to
transfer
carry out the support. In addition, organisations that might lack the
necessary experience to implement the services themselves could involve
outside expertise in the organisation of the services.
General
description of
main
achievements
The main indicator of achievements is the strong attendances that are
witnessed at each workshop. Over 250 businesses attended the 4
workshops held during 2012.
Additional
information
n/a
Friesland
Example 1
Title of the
Good Practice
Ondernemingsbeurs.nl
Topic and
Matchmaking, sellers & buyers platform
categorisation
Location
Netherlands (national level)
Date ‘Good
Practice’
2002
Date ‘Good
Practice’
concluded (If
Ongoing
(2009 sold to
private
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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commenced
Short
Summary
relevant)
organisation)
Ondernemingsbeurs acts as a marketplace where entrepreneurs who
would like to sell their companies find people who are interested in
buying a business.
Besides linking potential buyers and sellers, the website of
Ondernemingsbeurs offers a lot of useful information about important
aspects of buying/selling a business. You can find information about the
various financial aspects of transferring a business, lists of banks or
intermediaries that can assist you in this process and get in contact with
other companies. They also use the new social media like Twitter to help
people find the perfect match for them.
Field of
activity
Company transfer website: linking potential buyers and sellers.
What is the
core
conceptual
background
of the
practice?
Buyers and sellers create a profile and list their specifications. Sellers give
a detailed description of the company they are would like to sell. Placing
a sales ad costs €75.
The website has an extensive database where you can search for
companies by entering search criteria like region, size, turnover, etc. It is
free to look at the companies the website offers (registration is required).
Potential buyers can only see the name of the company until they have
progressed quite far through the process (and are really interested in the
company).
There are approximately 3.000 transactions via websites per year.
Besides being a market place, the website offers information about the
entire process of buying/selling a company. It offers advice from
accountants, insurance companies, investors, banks etc. Intermediaries
pay €450 per year to be able to offer their services and contact the
buyers/sellers.
The platform actively helps people find the right companies, for example
they use twitter to let people know what companies they have for sale.
Most of the businesses sold are micro/small.
The business model is based on third parties mostly, no commission or
direct income is generated from the transaction between buyers or
sellers.
Objectives
originally
intended
From the start, Ondernemingsbeurs, was a project initiated by the
Chamber of Commerce in the Netherlands in 2002. It was sold in 2009 to
a private organisation.
The goal of the platform was to create transparency in the market, to join
forces and get 3.000 profiles online. Looking back now (during the time
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the Chamber operated it), there were 1.100 profiles online. A surprising
finding was that transparency in the market was not needed or
appreciated by users.
What was the The low barriers for buyers and sellers to get together and the large pool
key factor
(database) of companies listed.
that made
this Good
Practice
successful?
Key

stakeholders 
involved

Chamber of Commerce, nationwide through all branch offices and online.
Intermediaries like accountants, insurance companies, investors, banks
etc. offering their services through the website.
Potential buyers and sellers.
How was the
practice
funded?
From the start, Ondernemingsbeurs, was a project initiated by the
Chamber of Commerce in the Netherlands in 2002. The project was sold
to a private company (Small Business Publishing) in 2009.
What were
the costs of
implementing
the practice?
Costs for setting up such a platform were approximately €35.000
What are the
expected
benefits of
implementing
the practice?
Increase the number of successful business transfers by connecting
potential buyers and sellers.
Once fully operational, it will run automatically with some back office
support. In practice, it turned out to take quite a lot of effort to maintain.
A risks to the viability of the platform is the dependency on revenues
from buyers/sellers and advertisers
Conditions for The success of the platform depends heavily on both the number of
potential
companies listed in the database and the traffic generated.
transfer
General
description of
main
achievements
The website had 35.000 unique visitors per month.
There were about 1100 companies listed for sale on the platform.
It was privatised in 2009 by selling it to the company Small Business
Publishing.
There are approximately 3.000 transactions via company transfer
websites per year in the Netherlands. There are over 10 of these kind of
platforms available.
Additional
information
Platform website (in Dutch)
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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www.ondernemingsbeurs.nl
Article on sale of platform to private organisation (in Dutch)
http://www.mkbservicedesk.nl/1725/kvk-verkooptondernemingsbeurs.htm
Example 2
Title of the
Good Practice
Landelijke Overnamedag (National Business Transfer Day)
Topic and
An event with presentations, forum discussions, workshops, round
categorization tables, matchmaking between buyers & sellers, information market with
exhibition space for intermediaries.
Location
Netherlands (national level), events in every region.
Date ‘Good
Practice’
commenced
Unknown
Short
Summary
The National Business Transfer day is annually organized by the Dutch
Chamber of Commerce. All of its branch offices throughout the country
organize a regional event in the same week. The target groups are local
entrepreneurs, intermediaries and potential buyers.
Field of
activity
Company transfer information events and face-to-face opportunities for
linking potential buyers and sellers.
What is the
core
conceptual
background
of the
practice?
The events are specifically designed for entrepreneurs who are
considering selling their business within a few years or people who are
interested in taking over a company. The events are usually schedules in
the evening between 18h-22h, allowing entrepreneurs to make the most
of their business day.
Date ‘Good
Practice’
concluded (If
relevant)
Ongoing (yearly
events)
Good preparation is half the battle and increases the chances of success.
People who want to learn what is involved in the takeover process, what
pitfalls there are, how to find a buyer or seller and who can support, are
most welcome.
The programme usually includes:




case studies of entrepreneurs who sold their business
information about finding buyers and sellers
tax tips from experts
insight into identifying and influencing company value
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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


explanation of financing for takeover
an opportunity to discuss your personal situation with various
consultants
the chance to meet and network with potential buyers or sellers
Most of the potential sellers who attend are micro/small entrepreneurs
(1-5 FTE).
Objectives
originally
intended
Providing information and facilitating matchmaking, lowering barriers for
both potential buyers and sellers.
What was the The provision of information so people get an overview of what is
key factor
involved in buying or selling a business, low barriers for buyers and sellers
that made
to get together (events are free of charge), and the regional character.
this Good
Practice
successful?
Key
stakeholders
involved


How was the
practice
funded?
By the Chamber of Commerce, a semi-governmental organisation in the
Netherlands. All companies are obliged to register here.
What were
the costs of
implementing
the practice?
Unknown
What are the
expected
benefits of
implementing
the practice?
Increase the number of successful business transfers by connecting
potential buyers and sellers and providing information on the topic.
Chamber of Commerce, nationwide through all branch offices.
Intermediaries like accountants, insurance companies, investors,
banks, but also entrepreneurs who sold their business (practical
experience, case studies), etc. providing
Conditions for No major barriers. Could be implemented with ease by organisations like
potential
Chambers of Commerce in other countries.
transfer
General
description of
main
achievements
Each regional event attracts between 200-400 guests every year. In 2013,
12 regional events are scheduled in May.
Direct effects of success (number of transfers as a result) are not
Transfer of Knowledge, Transfer of Human Capital (TOK-TOC) project, co-financed by ERDF and made possible by INTERREG IVC
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available.
Additional
information
Events website (in Dutch)
www.kvk.nl/overnamedag
West Central Lowlands - Scotland
Example 1
Title of the
Good Practice
Scottish Family Business Association (SFBA)
Topic and
Support for family businesses
categorisation
Location
Scotland, UK
Date ‘Good
Practice’
commenced
January 2006
Short
Summary
The Scottish Family Business Association (SFBA) is the definitive authority
on family business issues in Scotland, since 2006. A non-profit
organisation and a registered charity, it was created for business families
by family business leaders from Scotland.
Date ‘Good
Practice’
concluded (If
relevant)
n/a
The SFBA aims to make Scotland a world leader in family businesses.
Research, expertise and experience from across the globe shows that, by
adopting specific best practices, family businesses can overcome
inherent challenges and flourish both as businesses and as families. The
SFBA aims to ensure that family businesses are aware of these challenges
and have access to the necessary education and support.
Field of
activity
Family business advice and support.
What is the
core
conceptual
background
of the
practice?
The organisation was founded in January 2006 by eight family business
leaders as a charity to help improve the potential of family businesses
and the lives of all those involved in them. Personal experience showed
that almost none of the normal infrastructure that helps business existed
for the unique form that is family business. Students at business courses
were given little or no information about family businesses. Lawyers,
accountants, bankers had little opportunity to learn how to best advise
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those who led family businesses. Government at all levels - EU, UK,
Scotland, and regional - made barely any reference to the sector; their
economic development and regeneration strategies did not take into
account the importance of family businesses to the country. The media's
representation of family businesses either exaggerated the Dallas-type
feuding in family enterprises or ignored them completely. Finally the
family business owners and leaders themselves had little or no
understanding of the unique and challenging issues that the sector faces,
and thus didn't prepare for eventualities.
Having recognised that it would take a full generation to transform the
lamentable lack of support that existed in 2006, the situation today is
much improved thanks to the efforts of the SFBA and those who support
their work. Around half of Scottish universities now teach modules on
family businesses, including a module on giving legal advice to family
enterprises as part of the University of Strathclyde Law School Diploma
in Legal Practice. They have raised awareness of the need for
professional advisors to learn how to advise their family business clients,
and have instigated ground-breaking research and training in this area.
Hundreds of advisors now know that their family business clients require
a different and more complex approach than other clients. Family
businesses, and individuals within these firms, have thanked the SFBA for
helping them to resolve complex and often painful issues that
threatened to bring down the business and destroy the family harmony.
They have tried to educate and inspire government and their agencies,
with mixed results, but still we continue to influence policy in a
meaningful and informed way.

Objectives
originally
intended


Policy Impact
To raise awareness of key family business issues to all business
families in Scotland
To ensure that business families have access to support to help
them flourish
To develop a new culture amongst family businesses in Scotland
so that the next generation of family business leaders are
educated, trained and ready to professionally and expertly lead
their families and companies with confidence
n/a
(if any)
What was the
key factor
that made
this Good
Practice
The innovative nature and provision of services that are not provided by
government (regional or national), and that specifically address and
support family businesses that would otherwise have very little support
and guidance.
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successful?
Key
stakeholders
involved
Family businesses, politicians, policy makers, educational institutions,
professional advisors, business support organisations and the media.
How was the
practice
funded?
Not known
What were
the costs of
implementing
the practice?
Not known
What are the
expected
benefits of
implementing
the practice?
Increased support in the key areas impacting family businesses including
successfully achieving the transfer or succession of the business.
Conditions for Minimal barriers for replicating this model in other regions across Europe
potential
and indeed, there is a European Family Business network which already
transfer
exists. The support provided may vary from region to region, particularly
as many Chambers of Commerce may also provide similar services to
that of a Family Business Association.
General
description of
main
achievements




Additional
information
Influenced academic teaching on the specific challenges of family
businesses
Raised awareness of the need for professional advisors to learn
how to advise their family business clients
Instigated ground-breaking research and training
Put the positive case for family businesses to the media
Website
http://www.sfba.co.uk/
Example 2
Title of the
Good Practice
Building Better Business
Topic and
Support to SME’s
categorisation Building Better Business – pilot programme to evaluate the benefits of
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business transfer in Glasgow , Scotland
Location
Glasgow (largest City in Scotland, population circa 600,000)
Date ‘Good
Practice’
commenced
July 2013
Short
Summary
The project proposes to test the market to assess the number of
companies potentially for sale. To engage expert consultants from a
range of industry sectors to offer bespoke support to sellers and buyers.
A spin off is that Glasgow City Council Business Advisers/project officers
will be trained in the specific benefits of selling or buying an existing
business. This service will be piloted under the Building Better Business
project over 21 months, which if positively evaluated, will be rolled out
after the completion.
Field of
activity
SME Business Transfer.
What is the
core
conceptual
background
of the
practice?
Addresses findings of TOK TOC hand book on Business Transfer.
Designed to save established viable businesses, and jobs by offering a
matchmaking service to sellers and buyers
Objectives
originally
intended
Policy Impact



Date ‘Good
Practice’
concluded (If
relevant)
March 2015
Digital survey of number of existing businesses potentially for sale
Specialist training of public sector Business Advisers
Matching sellers to buyers

To improve the offer from public sector business advice and
services to existing business owners who want to sell their
business and consider alternatives to starting a new business and
buying an established business. Objectives include:
 To assess the market of viable businesses for sale.
 To consider the buying of an existing business when discussing
start-up
 To educate public sector business advisers on the value of
Business Transfer
Not known yet.
(if any)
What was the Not known yet.
key factor
that made
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this Good
Practice
successful?
Key
stakeholders
involved
Glasgow City Council together with funded delivery partners, Business
Gateway & Jobs and Business Glasgow.
How was the
practice
funded?
60% costs from Glasgow City Council
What were
the costs of
implementing
the practice?
Circa £25,000
What are the
expected
benefits of
implementing
the practice?
40% costs from ERDF



To save existing established businesses
To secure existing jobs
To advise people considering start-up of the benefits of buying an
existing viable business
Conditions for Easily transferrable to other regions across Europe through effective use
potential
of structural funds.
transfer
General
description of
main
achievements
Aims the project is designed to achieve








Identification of 5 industry expert contractors using ERDF/GCC
procurement rules
Design of a short digital survey to establish numbers and type of
companies for sale in Glasgow
Matching of experts with ‘sellers’, done by the project
coordinator
Arrange meetings for one to one bespoke sessions with sellers
and consultants
Take referrals from Glasgow City Council (GCC) start-up advisers
from potential ‘buyers’
Make the match between sellers and buyers facilitated by
consultant
Ensure all GCC business advisers are aware of the possibility of
buying a business
Run workshops for sellers, buyers and business advisers to
exchange concerns, ideas and to form the future of the activity
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Additional
information
None at present.
Example 3
Title of the
Good Practice
Scottish Enterprise – Co-operative Development Scotland
Topic and
Business support
categorisation
Location
Scotland
Date ‘Good
Practice’
commenced
2005/6
Short
Summary
Co-operative Development Scotland’s role, as a specialist resource, is to
provide co-ownership support that complements the mainstream support
provided by Scottish Enterprise, Highlands & Islands Enterprise and the
Business Gateway. CDS's specialist advice is available to both those
considering a co-operative venture and established co-operatives and
employee owned businesses. They offer expert knowledge and assistance
including advice on legal structures, funding options, membership
participation and communicating co-operative benefits, and facilitate
access to support available from partner organisations.
Field of
activity
Business support and ownership transfer
What is the
core
conceptual
background
of the
practice?
The consortium model has proved its worth in Scotland. Companies
come together and get involved in jointly marketing and tendering for
business. But this innovative model is also perfectly suited for smaller
firms which want to share the risks and costs of trying out export
markets.
Date ‘Good
Practice’
concluded (If
relevant)
n/a
The consortium co-operative model enables independent businesses
that wish to remain independent – to become members of a new legal
entity. The purpose of which is to carry out some agreed activity – in this
case exporting, on behalf of its members. The consortium operates on a
‘one member one vote’ basis.
This type of consortium has a number of advantages for the businesses
who are its members – not least that new member businesses can join or
even exit, with the greatest of ease. On leaving the consortium members
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have no shares to sell and members are protected by limited liability.
What matters is having a shared purpose.
This is a flexible approach and could mean anything from selling into the
same overseas market, targeting the same customers, or benefiting from
the same market information or research.
This can give rise to new ways of thinking – businesses that see each
other as competitors inside the UK may find collaboration works for
them in export markets.
If collaboration in exporting is to succeed it is vital to have the right
advice from the outset, and to agree clear ground-rules which the
members will adhere to. Setting up the consortium on the right lines,
with workable rules, is where the experience of Co-operative
Development Scotland (CDS) comes into play.
Through their specialist advisers (and working alongside industry experts
in SDI and Scottish Enterprise) CDS provides a full, free, support service
covering everything from co-ordinating the initial discussions, to
providing the right legal structure, articles of association and members’
agreement.
CDS can help initial conversations with those firms who come forward, to
establish a shared purpose and willingness in principle to collaborate.
Objectives
originally
intended
The designation and tasks for the establishment of the CDA were clearly
conveyed to Scottish Enterprise in June 2005 by the Scottish Executive.
The terms of reference provided required the proposed agency to:
− operate on a Scotland-wide basis;
− focus on becoming a first-stop-shop for individuals/groups seeking to
set up a new co-operatives or for co-operatives seeking to grow;
− undertake a number of key activities –
• promotion of the co-operative model
• direct provision of advice and information for co-operatives
• dissemination of best practice in co-operative business support
• training in co-operative business skills (directly or through others)
• the collection of research and data on the co-operative sector
• partnership working with other support in the UK and beyond;
− exclude support for sectorally-based co-operatives with existing
support (e.g. housing co-ops) and social enterprises more generally;
− become fully aligned to the wider business support system, through
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agreed referral mechanisms with existing Enterprise Network support
mechanisms (Business Gateway and LECs);
− be created as a subsidiary of Scottish Enterprise, with its own
Advisory Board and ‘fairly small’ support team; and
− operate with a budget of up to £3m from the Scottish Executive,
provided via Scottish Enterprise.
This formed the basis of the initiative that Scottish Enterprise was tasked
with putting in place.
Policy Impact
n/a
(if any)
What was the
key factor
that made
this Good
Practice
successful?
It took longer than expected to establish CDS, and with the benefit of
hindsight, the timeframe was overly optimistic. It suggests that CDS has
performed adequately and made some achievements: helping to build a
better understanding of the scale and economic significance of the cooperative sector; establishing itself as a focal point for support to the
sector; bringing increased prominence and attention for the sector and
establishing the CDS brand; and testing some interesting projects that
have the potential to encourage innovation and growth of the cooperative sector.
Key
stakeholders
involved
Government; businesses
How was the
practice
funded?
Government funding
What were
the costs of
implementing
the practice?
Initial investment of £3million per year for 3 years
What are the
expected
benefits of
implementing
the practice?
By helping businesses 'scale up', consortium co-operatives can create
new platforms for growth. Member businesses can retain their own
brands, independence and control, while reducing costs or sharing the
risks of tackling new markets or investing in new processes.
Conditions for Requires significant government investment, however, has the potential
potential
to add real economic value in regions
transfer
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General
description of
main
achievements
CDS has taken on a broad and flexible remit to assist established
cooperative businesses. Its advertised support products include: full
diagnostic business reviews and financial health checks; advice and
training in managing a co-operative; carrying out market research into
new business opportunities; help to access funding for growth; and
facilitating inter-trading in the sector.
Additional
information
Website
http://www.scottish-enterprise.com/microsites/co-operativedevelopment-scotland/about-us.aspx
Scottish Government
http://www.scotland.gov.uk/Publications/2004/03/19112/34711
Annual Review
http://www.scottishenterprise.com/~/media/SE/Resources/Documents/ABC/CDS-AnnualReview-2011-12.pdf
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