Newspaper article The Journal (Newcastle, England)

Good Advice; in Association with RBS Small Business

Newspaper article The Journal (Newcastle, England)

Good Advice; in Association with RBS Small Business

Article excerpt

Byline: Carole White

SUCCESSION planning is a key concern for a growing number of businesses across the region. There is significant support for starting up in business, but how do you get out? How do you pass the baton effectively?

The effective transition of business ownership can potentially drive productivity through increases in innovation, investment and skills.

It is estimated that around onethird of all EU firms are expected to change hands over the next decade, affecting around 610,000 small and medium-sized enterprises (SME) and two and a half million jobs.

One-third of UK SME owners have been identified as vulnerable to agerelated transfer failure, and this vulnerability affects an increasing proportion of the SME owners.

It appears that small businesses are at greater risk of business transfer failure than bigger ones as they are often less likely to plan effectively or to consider and develop potential successors.

Overcoming this barrier can provide a way to revive the entrepreneurial and innovative energy that led to the business being created in the first place.

Key to the whole process is the initial realisation and analysis, focusing on the particular issues for your business. This will include not only business-related matters, but also the social, psychological and, where relevant, family politics which are all potential obstacles to business growth. …

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