Bratislava,

1
Business Transfer East (BTE) Project Building a
European Network to support Business Transfer
and Development in Eastern European Countries
Summit Economic Forum Bratislava, 23 November 2005
Final results and future developments
Paolo Zaramella Atelier StudioCentroVeneto,
Vicenza - Italy
2
My speech
BTE general structure
The study visits
The questionnaires
Some conclusions
3
BTE general structure
BTE is the first initiative for Eastern European
countries relating to this issues
The main idea Making these countries more
sensitive to Business Transfer issues
How?
Building a new Eastern European Network in order
to - exchange experiences - point out Good
Practices - start a new relationship
approach for a deeper and more intense
collaboration
4
The BTE structure
Project Leader G. Rumor Foundation - CPV, Vicenza
Technical partner StudioCentroVeneto, Vicenza
Institutional partner Unioncamere Rome
Italy
Hungary National Chamber of Commerce and
Industry, Budapest
Banja Luka (BA) Regional Chamber of Commerce and
Industry
Slovakia National Chamber of Commerce and
Industry, Bratislava
Eastern European Countries
Duration October 2004/November 2005
Presentation of final results SEF 2005,
Bratislava
5
Main phases
Step 1 Initiation of project communication and
promotion (October and November 2004)
Step 2 Selection of 30 companies (about 10 SMEs
for each Eastern Country) and issue-specific
questionnaire
Step 3 Study and dissemination visits to
Eastern European countries
Step 4 Implementation of a plan aimed at
increasing BT awareness
Step 5 Dissemination and reporting of project
results (SEF 05)
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The study visits
Banja Luka, 24-26 February
Budapest, 20-22 July
Bratislava, 1-3 August
Total participants - Technical meetings 20
persons - Public seminars about 90 persons
Not only a notable number of participants, but
above all a high level of interest shown, too
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The general impressions during the visits
Requests for further study of the subject
appreciable!
Illustrations of their own business and family
situation frequent!
high level of attention to the problem desire
to get involved appreciable level of awareness!
Companies established before 1985-89 very few!
Anyway, the number of over-55s is appreciable
SMEs involved in delicate processes of transition
from one generation to the next at least 20
( Average data from government and private
sources)
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But what are the diversified needs which emerged
in the three countries?
BANJA LUKA
local economy still weak (more a matter of
survival than of consolidation and development?)
the farming sector high presence and
importance (agriculture still has unique features
in BT)
great attention to the training from the Chambers
(i.e. managing human resources, culture of
quality and entrepreneurial empowerment)
activation and development of the spirit of
enterprise an essential need (look on the
continuance of an existing business, instead of a
start up?)
9
HUNGARY
national economy (in general) developed and
consolidated (great attention to the market,but a
big competition from Far East, too)
training services great importance (especially
for technical and managerial modernization
processes)
micro and small businesses strong and important
presence (various implications for BT issue)
average unemployment high (in particular among
young people and women) (is it necessary to
change the attitude of young people?)
the senior entrepreneurs problem of pensions
(economic support after retirement? "relief
valve" for entrepreneurs?)
10
SLOVAKIA
country's economy strong growth (i.e. in the
manufacturing sector) (big attraction for many
foreign investors and many businesses)
Italian presence in the business strong (good
chance to comparison and dialogue between Italy
and Slovakia for BT?)
agriculture certain weight in the national
economy (agriculture still has unique features in
BT)
level of technology and innovation in the
economic system high (strongly linked with BT
issue)
attraction and development of an entrepreneurial
spirit very important (do some elements of
inertia persist in the system?)
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The questionnaires
Interviewed general data(with 56 questionnaires)
POSITION IN THE COMPANY Senior/founder 89 Junior/
successor 11
GENERATION IN POWER First 86 Second
11 Third 3
Key actors
Young companies and/or owners
COMPANY FOUNDATION YEAR Before 1950
4 1951-60 2 1966-70
2 1976-80 2 After 1985-89 90
CORPORATE NAME Personal company
18 Limited partnership 4 Limited
liability comp. 71 Joint-stock company
2 Other 5
Young companies and/or owners
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...interviewed general data
EMPLOYEES NUMBER (relatives included) 0-1
7 2-5 66 5-10
14 11-14 7 25-30 4 More than 30 2
TRANSACTIONS VOLUME (in Euro, year 2004) Till
500,000 86 500-600,000
5 600-700,000 5 700-1 Mil.
2 More than 1 Mil. 2
Mostly small or micro companies (under 10
employees)
RELATIVES IN THE COMPANY almost 3
Mostly family business companies
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Junior/successor profile
DAUGHTER/SON AGE Under 20 2 20-25
28 26-30 35 31-35
17 More than 35 18
Good business and/or professional maturity? Good
entrepreneurial potential?
he/she works in the company 90
WORKERS SINCE (IN YEAR) Less than 1 4 2-3
33 4-5 37 6-10
17 More than 10 9
SCHOOL CAREER High school
62 Graduation 38 (plus master, 70)
GENDER 50 Male, 50 female
High back-ground!
Good balance!
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Business Transfer processes
TRANSFER ALREADY DONE only 7!
WHEN WILL THE FORMAL BUSINESS TRANSFER BE
DONE Within 2-5 years 17 Within 5-10 years
8 I dont know 75
European Indicators
ADRESSEE OF THE TRANSFER - to a family member
96 - to an employee 2 - other 2
TRANSFER TYPE - succession 89 -
endowment 11 - sale or merger 0 -
quote/share transfer 39 - I dont know 11
TRANSFER MOTIVATION - superannuating/age 89
- trouble/health 9 - other causes 2
( already done or in the future)
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Business Transfer processes
Main aspects that could affect you BT processes
Market influence, competition (external
leadership) only 16
Relationship/organisational aspects (internal
leadership) 84!
BUSINESS TRANSFER PROJECT Yes 9 No 46 A
draft 45
if yes
THE PROJECT HAS A strategic plan
60 Deadlines 40
- Less than 1 year 64 - 2-3 years 29 - 6-10
years 7
DURATION OF THE PROJECT
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Support focused services
Sensitisation and supporting actions (focused
meeting)
4.5
Training meeting for Senior or for Junior
entrepreneurs
4.3
Strong sensitisation and information actions
4.1
Focused researches (sectors, typologies of
problems)
4
Fiscal supports for business transfer
3.9
Facilitated financing to support the business
transfer planning
3.8
Mixed training meeting (Senior and Junior)
( 1 not interesting 5 deeply interesting)
3
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Some conclusions
On average, the entrepreneurial class in the
three countries is young, though already
interested by the theme of Business Transfer
Almost 90 of the companies interviewed have
micro dimensions
The Juniors (effective or potential successors)
already have good experience in the company and
an adequate education, but at the same time only
one young person in four is also a partner
A low percentage of businesses are planning their
Business Transfer process, settings themselves
times and methods
A very high percentage of interviewees believe,
wrongly, that the BT process only lasts one year!
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some conclusions
The weight of internal factors (organizational
and relational) is four times higher than that of
the external/market ones
Almost all companies declare that they make an
internal transfer within the family, almost
always because of the age of the Senior and of
his/her retirement
In the same way, the technical form of the
transfer is that of succession following death or
of the transfer, preferably gradual, of stocks or
shares
There is a general appreciation of any support
services
Those most in demand refer, correctly, to support
and sensitization actions, followed by training
activities for Seniors and Juniors, and broad
information
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Peculiarities found in the three countries
Businesses still in the preparatory stage
BANJA LUKA
Total absence of a project
Importance of sensitization actions
Some companies also of advanced age
HUNGARY
The theme is very topical
Good presence of a draft project
Young and quite structured companies
SLOVAKIA
Adequate presence of draft projects
Great attention to specialist services