IDEAS home Printed from https://ideas.repec.org/a/vrs/organi/v51y2018i2p135-145n6.html
   My bibliography  Save this article

The Challenges of SME Business Transfers: The Evidence from Croatia and Finland

Author

Listed:
  • Alpeza Mirela
  • Mezulić Juric Petra

    (Josip Juraj Strossmayer University of Osijek / Faculty of Economics in Osijek, Trg Ljudevita Gaja 7, 31000 Osijek, Croatia)

  • Tall Juha

    (Agency for Rural Affairs/Department of Rural Development, P.O. Box 405; 60101, Seinäjoki, Finland)

Abstract

Background and Purpose: In the life cycle of a firm, business transfer represents the critical stage of development. Underestimating the complexity and longevity of this process can have negative implications for firms, their owners and wide network of stakeholders. The aim of this paper is to compare the attitude towards business transfer of entrepreneurs aged 55 and more in Croatia and Finland and provide policy recommendations for improvement of the national business transfer ecosystems. Methodology/Approach: Both surveys targeted entrepreneurs aged 55 and more using the same questionnaire, with some adjustments to Croatian business transfer ecosystem. Finish barometer was conducted through webbased survey among members of Federation of Finnish Enterprises. Survey in Croatia was conducted with combination of CATI and CAWI collection method by a professional data collection agency. Data collected was compared based on a demographic criterion, industry background, experience in business transfer, expected future of the company, support needed and biggest challenges. Results: The research results indicated a growing number of entrepreneurs in Croatia who will be interested in selling their firm once they withdraw from the business and less than expected family business successions. In Finland the most important challenges are related to business valuation and finding a successor or a buyer. Conclusion: For further development of business transfer ecosystem in Croatia it is recommended to focus on awareness raising activities, channels for matching sellers and buyers, promotion of takeover entrepreneurship and consultancy support for micro enterprises. In Finland results indicate the importance of investing continuous efforts in raising the effectiveness of the measures implemented.

Suggested Citation

  • Alpeza Mirela & Mezulić Juric Petra & Tall Juha, 2018. "The Challenges of SME Business Transfers: The Evidence from Croatia and Finland," Organizacija, Sciendo, vol. 51(2), pages 135-145, May.
    • Handle: RePEc:vrs:organi:v:51:y:2018:i:2:p:135-145:n:6
    DOI: 10.2478/orga-2018-0012
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/orga-2018-0012
    Download Restriction: no
    File URL: https://libkey.io/10.2478/orga-2018-0012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Martina Battisti & Hiroyuki Okamuro, 2010. "Selling, Passing on or Closing? Determinants of Entrepreneurial Intentions on Exit Modes," Global COE Hi-Stat Discussion Paper Series gd10-151, Institute of Economic Research, Hitotsubashi University.
    2. Isabelle Le Breton–Miller & Danny Miller & Lloyd P. Steier, 2004. "Toward an Integrative Model of Effective FOB Succession," Entrepreneurship Theory and Practice, , vol. 28(4), pages 305-328, July.
    3. Penrose, Edith, 2009. "The Theory of the Growth of the Firm," OUP Catalogue, Oxford University Press, edition 4, number 9780199573844.
    4. Morris, Michael H. & Williams, Roy O. & Allen, Jeffrey A. & Avila, Ramon A., 1997. "Correlates of success in family business transitions," Journal of Business Venturing, Elsevier, vol. 12(5), pages 385-401, September.
    5. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aapo Länsiluoto & Elina Varamäki & Erkki K. Laitinen & Anmari Viljamaa & Juha Tall, 2015. "Management Control Systems in Small Business Transfers — A Resource-Based View," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 449-471, December.
    2. Zybura, Jan & Zybura, Nora & Ahrens, Jan-Philipp & Woywode, Michael, 2021. "Innovation in the post-succession phase of family firms: Family CEO successors and leadership constellations as resources," Journal of Family Business Strategy, Elsevier, vol. 12(2).
    3. Ahrens, Jan-Philipp & Landmann, Andreas & Woywode, Michael, 2015. "Gender preferences in the CEO successions of family firms: Family characteristics and human capital of the successor," Journal of Family Business Strategy, Elsevier, vol. 6(2), pages 86-103.
    4. Nils Grashof, 2020. "Sinking or swimming in the cluster labour pool? A firm-specific analysis of the effect of specialized labour," Jena Economics Research Papers 2020-006, Friedrich-Schiller-University Jena.
    5. Boris Rumanko & Zuzana Lušňáková & Monika Moravanská & Mária Šajbidorová, 2021. "Succession as a Risk Process in the Survival of a Family Business—Case of Slovakia," JRFM, MDPI, vol. 14(10), pages 1-20, September.
    6. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    7. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    8. Umans, Ine & Lybaert, Nadine & Steijvers, Tensie & Voordeckers, Wim, 2021. "The influence of transgenerational succession intentions on the succession planning process: The moderating role of high-quality relationships," Journal of Family Business Strategy, Elsevier, vol. 12(2).
    9. Edouard Ribes, 2021. "What is the effect of labor displacement on management consultants?," SN Business & Economics, Springer, vol. 1(2), pages 1-22, February.
    10. Aleš Kubíček & Ondřej Machek, 2019. "Gender-related factors in family business succession: a systematic literature review," Review of Managerial Science, Springer, vol. 13(5), pages 963-1002, November.
    11. Lorraine Uhlaner & Petra Gibcus & Niek Timmermans & Marta Berent-Braun, 2009. "The Relationship between Successor, Planning Characteristics, and the Transfer Process on Post-Transfer Profitability in SMEs," Scales Research Reports H200901, EIM Business and Policy Research.
    12. Kandade, Kiran & Samara, Georges & Parada, Maria José & Dawson, Alexandra, 2021. "From family successors to successful business leaders: A qualitative study of how high-quality relationships develop in family businesses," Journal of Family Business Strategy, Elsevier, vol. 12(2).
    13. Hillebrand, Sebastian & Teichert, Thorsten, 2020. "Successor selection in times of continuity and renewal - A discrete choice-experiment," WiSo-HH Working Paper Series 59, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    14. Gianluca Ginesti & Mario Ossorio, 2021. "The influence of family-related factors on intellectual capital performance in family businesses," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(2), pages 535-560, June.
    15. Juric Petra Mezulić & Alpeza Mirela & Peterka Sunčica Oberman, 2020. "Ageing Entrepreneurs and Business Transfer Challenges in Croatia," Naše gospodarstvo/Our economy, Sciendo, vol. 66(1), pages 13-22, March.
    16. Byungjoo Paek & Joohyun Kim & Joonyoung Park & Heesang Lee, 2019. "Outsourcing Strategies of Established Firms and Sustainable Competitiveness: Medical Device Firms," Sustainability, MDPI, vol. 11(17), pages 1-28, August.
    17. Michael Gilding & Sheree Gregory & Barbara Cosson, 2015. "Motives and Outcomes in Family Business Succession Planning," Entrepreneurship Theory and Practice, , vol. 39(2), pages 299-312, March.
    18. Andreas Felsberger & Gerald Reiner, 2020. "Sustainable Industry 4.0 in Production and Operations Management: A Systematic Literature Review," Sustainability, MDPI, vol. 12(19), pages 1-39, September.
    19. Lucrezia Songini & Paola Vola, 2015. "The Role of Professionalization and Managerialization in Family Business Succession," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2015(1), pages 9-43.
    20. Jeffery S. McMullen & Benjamin J. Warnick, 2015. "To Nurture or Groom? The Parent–Founder Succession Dilemma," Entrepreneurship Theory and Practice, , vol. 39(6), pages 1379-1412, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:organi:v:51:y:2018:i:2:p:135-145:n:6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.