The EU Commission has published a new Recommendation on business transfers, to facilitate the transfer of ownership of small and medium enterprises (SMEs).
The challenge is of a growing number of small business owners across the EU who are approaching retirement without a designated successor.
This has the potential to impact millions of companies over the next decade, says the Commission.
Where a transfer fails, jobs, know-how and economic value may be lost. Furthermore, it adds, in the absence of European buyers, strategic European businesses may increasingly be acquired by foreign competitors and investors.
The Recommendation builds on a 1994 Recommendation on business transfers. While maintaining many of its core principles, the updated Recommendation places greater emphasis on awareness-raising, legal and tax measures, digital matchmaking platforms for buyers and sellers, and coordinated EU-level cooperation to preserve business continuity and jobs within the EU.
For example, it encourages EU Member States to reduce administrative, legal and tax barriers to cross-border business transfers, helping businesses make full use of the opportunities offered by the Single Market. It also recommends developing dedicated financing and training programmes to broaden the pool of potential successors and entrepreneurs, including women and other under-represented groups in entrepreneurship.
This new guidance is already in today’s agenda of the meeting of the SME Envoys Network with EU Member States and SME associations.
