SMEs are deeply woven into Europe’s economic and social fabric. A recent study by the European Commission on business dynamics that measures the impact of unsuccessful business transfers on the economy concluded that every year in Europe, around 150,000 firms are lost, representing 600,000 jobs, solely due to an insufficient number of successful business transfers.

Although timeless (activity continuity and change-over-time), SMEs are the most vulnerable to transfer failure, as they are often closely linked to the skills and personality of their owner. It’s not easy to transfer intangible assets. Many profitable activities with guaranteed timelessness and elements of internationalization seize untapped growth. However, they are not enterprises, but with an investment of effort, time and money can be turned into natural treasures and thrive.

Additionally, factors such as legal form, human capital failures, job exhaustion, lack of ambition, loss of competitive spirit, dysfunctional management practices, and inherited ways of thinking take a toll—on productivity, self-drive, creativity, and enthusiasm. Yet, entrepreneurs’ unworthiness to embrace digital technologies and manage the uncertainty and complexity ―of the external environment in the digital era and network society― lead to corporate collapse and loss of opportunities.

Given the importance of business transfer for the European economy, could take the following measures to improve it:

Organizing transparent markets to spot hidden opportunities and facilitate the transfer of business.
Establish support programs and early awareness-raising for better planning and preparation.
Reducing the regulatory burden and improving market access. Improving the legislative and financial framework for business transfers and removing barriers to cross-border investment, reducing inheritance and donation taxes, and encouraging transfer to third parties (e.g. promoting transfer to employees through the tax system).
Capacity-building and support for the transition to sustainability and digitalization.
Providing advice and Guidance to businesses and improving access to transfers financing.
Supporting (give the same weight) transfers as start-ups.

We're working alongside our ecosystem participants to solve their biggest challenges and empowering them with the playbook to Design, Build, and Scale new businesses.

CORTMA's —transfer of business— framework and toolkit: We set up and accelerate the data creation of the transferred Micro, Small & Mid-Corporate Enterprises' (MSMEs) ecosystem and actively support the fast-track ecosystem's development. We coded the relevant institutional framework and model the transferring process of business. We guide SMEs and corporations in transforming themselves to cope with new market conditions, reinventing the go-to-market, maintaining clean financials; current tax records, and implement better standard operating procedures. We assess and certify your business viability. We evaluate and maximize business value. We orchestrate robust business solutions, spot, highlight and communicate (promote) hidden business opportunities in large & relevant teamed audiences. We design, build and foster collaborations and implement meaningful action.