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: