TRANSFER a BUSINESS to a WOMAN : GENDER ANALYSIS and TRAINING & CONSULTING SUPPORT MODEL

TRANSFER a BUSINESS to a WOMAN : GENDER ANALYSIS and TRAINING & CONSULTING SUPPORT MODEL

LIFELONG LEARNING PROGRAM-LEONARDO da VINCI 2007-2013

NEXT BUSINESS GENERATION

Transfer a Businesses to Women

The Reason Why the Project in the Italian experience and approach

Summary

the dimension of the problem : focus on family business

strategic actions

Lombardy projects (the Starting Point of

methodology transfert)

lack and need of a specific “gender approach”

Lombardy :the italian economy engine

Fonte: Unioncamere Lombardia

Lombardy represents more than 1/5 of Italian richness and, for important economic variables, concentrates high shares on the national total.

52% of investments from abroad (15.9 mld di Euro)

40% of investments abroad (16.6 mld di Euro)

30.9% of enterprises which belong to groups (37.629)

24.6% of joint-stock companies (238.849)

20.8% of the net output

30% of the bank financing

Enterprises dimension in Lombardy

0,03%0,20%1%7%20%72%PERCENTAGE

2501.2507.50051.000150.000530.000N. OF ENTERPRISES

500 >250-49950-24910-493-91-2WORKERS

BIGMEDIUMSMALL

Fonte: ISTAT

97% of enterprises have less than 20 workers (mean 5,5)

Women enterprises in Lombardy

On a total of 740.000 enterprises, women business is composed by 158.194 firms 21, 3 %

Italian mean : 23,5 %

As total numer Lombardy women business is the italian biggest one, as relative number, on the local economic environment, is the smallest one !!

Women enterprises are very small and still more concentrated in a few activities sectors (91,6% in only 6 business sector-italian mean)

Data relating to the generational turnover in Italy : a relatively old intrepeneurial class

More than sixty years old entrepreneurs 43% of thetotal

Family entrepreneurs involved every yearin the generational turnover

66.000

Employees involved in the generationalturnover (in '99)

220.000

Enterprises at risk every year 20.000

Jobs at risk every year 65.000

Number of enterprises which should dealwith the problem in the next 10 years

40% of thetotal

Presence of a descendant in the leadershipof the enterprise

70% of thetotal

Entrepreneurs who want to leave theenterprise to a relative

68% of thetotal

Entrepreneurs who consider thegenerational turnover as something verydifficult or impossible to deal with.

80% of thetotal

Fonte: SDA Bocconi

The data in Lombardy

The enterprises with less than 10 workers are 92% of the total

30% of enterprises close for the lack of successors

5.000 enterprises close every year in the small industry sector - this means 20.000 jobs less into the sector

Consequencies

Risk of economic and social wealth loss

(know-how - culture - identity)

Example:

ancient jobs

… the consequencies

Impoverishment of the territory

since an enterprise

is included in a territorial network

example:

The network of services for the historic centres and the artistic shops which are going to disappear

… the consequencies

Risk of management loss for

Associations/Institutions

Loss of individual capital stock

As a consequence of the network of relations which the entrepreneur has built in the years.

Approaches

When we talk of transfer of enterprise we have to consider three approaches:

differentiated approach

interdisciplinary approach

temporal approach

Differentiated approach

It is referred to the enterprise dimension

there are different organizational

complexities connected to:

small - medium - micro enterprise

sub-supplier

services/products

artistic jobs

(ex.: entreprises valuation …)

… approaches

to the

reference market

Family Business or not

And if it is a family business, is the succession internal or is it a transfer ….?

And if it is internal, is there a single heir?

And what about the sex of the hair ?

All this to say that

the enterprises have their own PECULIARITY

There aren’t paradigms

There is not benchmarking

Each case is different from the other

… approachesTo the kind of property/transfer

psychological

organizational

fiscal-legal

financial

Multidimensional / interdiscipliscinary approach

… approaches

It is necessary

To consider

different

aspects

… the succession in a family business

psychology

organization

legal- fiscal

financialxxx = max importance

xx =medium importance

x = min importance

xxx x

xxx xx

x xx

x xxx

familiar not familiar

small/medium small/medium

44% > 60 years

50% near to pension

20% won’t have a successor

It is necessary to arrive as soon as possible

If we arrive too late the enterprise is no more transferable

It is necessary to arrive about 5-6 years before the most critical point (importance of an estimate check-up )

… approaches

The variable “time” :

Succession in a family business

Why it’s necessary a “gender approach”

The small entrepreneur have or not heirs ?


To have or not to have heirs is the real selection of a family business.

The sale is always very difficult.

The small entrepreneur have or not heirs ?

When the heir is woman….


If the heir is woman, she isn’ “supposed” to be a successor in business …also for entrepreneurial big dinasties…

No No “social expectation” in succession or much more less than for a male heir …The business dismission in less traumathic…The sale is undervalued…


The most prolific phase is the one of the joint – management when the successor co-operates with the owner.

Much innovation is done in this phase.But this “training” lasts 8-10 years

It is necessary to recognize the transfer in time and to introduce the heir in the business:


In many cases women work in family business in “administrative and burocratic functions” that are considered relativly not strategic…

No awareness to be an entrepreneur…

Get used to be a “supporter” non a decision maker…

It is necessary to recognize the transfer in time and to introduce the heir in the business:


In a production family business it is important that the heir knows manual labour (technical managerial approach)


In a production family business it is important that the heir knows manual labour (technical managerial approach)


In IN


Often women dont’ want to succed in a “tipically man” business or in business “tipically man managed”….

They also identify the producer with the entrepreneur and autoexclude themselves from the business…


The family agreements (or Family Board) are becoming, in family business, the real body to take decisions on investments, distribution of earnings, and, above all on successions

The family agreement anticipates future problems, quickens decisions, manages business conflicts.


The family agreements (or family board) are becoming, in family business, the real body to take decisions on investments, distribution of earnings, and, above all on successions


Is a formal act not “coherent” with the traditional “informal” power of women into families, used to mediate, to take care of, not to puntualize, to mark limits, to define “power’s areas”…


The different gender approach to business start-up


Many recent italian reserches show different initial motivation to start up a business between women and men .

Women entrepreneur give more relatively importance than men to :

-specific know-how (to do samething for managing it..) 56% versus 32%

-realize a dream 41% versus 31 %

-conciliate rules and times 54% versus 25 %

It’s more difficult to succed in a different intrapreneurial and “life” project !!

1) It is necessary to pay attention to territorial policies: the business survives if the territory is competitive

Strategic actions:the environmental right conditions for succession

for this goal

it is necessary to create a favourable environment by

promoting above all

innovation, development, professional training

Region

Chamber of Commerce

Universities/Schools

Local institution

2) It is necessary to deal with the problem in a systemic way

… strategic actions

Associations / Confidis

Banks

public istitutions as private istitutions as

By creating a mixed co-operating network

to build local and general sdata bank to permit a meeting between

old and new entrepreneurs

to offer advice

to organize sensitization actions3) What is important to do:


to build specific support for business transfert to women


enterprises

aspiring entrepreneurs

public institutions

financial system

Who are the

stakeholders?


they must be sensitized on the problem in time

the Associations have an important role

Limits: micro and small

family business:

• Firm belief in the leader immortality

• Postponements under the pretext of other tasks

• Reluctance to manage critical, personal and complex aspects

• Distrust towards rules that limit the freedom and the autonomy of decisions

There isn’t a precise moment when they think to the problem

Attention: with Basel2 the succession policies will influence enterprises rating


it is necessary to be present in: schools, universities, families to sensitize them on the problem

in public institutions as: regional government

local institutions

chambers of commerce

Not olly advice but it’s necessary to create a favourable environment and the supports to the

generational turnover


dedicated resources and financial products

profitabler interest rates

advice supports

To create financial instruments to assist the turnover

Exemple :


mutual guarantee created by associations of enterprises which offer advice and guarantee funds to let the smes obtain bank credit

The Confidis role

What they are

Confidis can have an important role also in the interventions for the generational turnover by financially helping the successor or the external buyer to take the place of the previous owner


to know the territorial business system

to reduce the banking risk (and to give favourable conditions to smes)

cooperation with the public institution and associations

Strength points of Confidis:


it is necessary to develop specific training and advice programs on entrepreneurial awareness and rules (less “romantic” approach to

Gender entrepreneurial Culture business, more empowerment and learderhip development…)

Conciliation Policies to build a policy of national and regional services, structures and cultural instruments to permit a real conciliation between firm and family management

THE actual PROJECT

Objectives – Output – Instruments – The italian expertise meet the european partners

Summary :

the LEONARDO Life Long Learning Program “Donna cerca Inpresa in Europa” : WHAT IS

the actors of the Project

Project phases and timing

the expected outputs and results

promoted by IDI (Industrial District Institute by

Arezzo Region-Touscany) to extend the Lombardy experience and expertise to Touscan Region and to permit an european debate and comparison.

By LEONARDO LIFELONG LEARNING PROJECT 2007-213 – Transfer of Innovation

Donna cerca Impresa in Europa (Woman searching for Enterprise in Europa )

WHAT IS : a TECNOLOGY TRANSFER…

the Project represents for the Touscany’s women entrepreneurs an important chance to know european partners and to establish networking policiese and strategies…

Donna cerca Impresa in Europa (Woman searching for Enterprise in Europa )

WHAT IS : a CHANCE of meeting and business…

The EUROPEAN PROJECT PARTNERS

APM CR (Association of Women Enterpreneurs and Managers of the CZECH REPUBLIC )

ZAVOD META (Association of Women Enterpreneurs and R&D Center for women enterprenurship SLOVENIA)

EUROMOB CONSULTING TEAM (Professional Training and hosting organization in to transnational Mobility ROMANIA)

KLEJNOT TRAINING (Professional Training and hosting organization in to transnational Mobility POLSKA )

… The main Project’s phases

Work Packages Timing

Local scenario analisys in AREZZO district by representative interviews to women enterpreneurs involved in firm’s successionCase Histories redaction…

MAY - JULY

4 European FOCUS GROUP to compare national scenario and approach – Local sinthetic panoramas for final researc document…

JUNE - SEPTEMBER

Preparing worksheets and final documents and reports JULY – NOVEMBER

… The main Project’s phases

Work Packages Timing

Valorisation and dissemination of the results by 2 Training Workshop with SMEAssociation Representative in AREZZO

SEPTEMBER - NOVEMBER

Dissemination of results –Test of the model rules – Preparing the final Congress DECEM. – JANUARY 09

Final international CONGRESS in AREZZO about the Project items and results FEBRUARY 09

… The expected output and results

OBJECTIVES

The Project intents to build a specific support for business tranfert to women, addressed to entrepreneurs Associations, social partners,

organisations providing learning opportunities.

In particular it intents to promote the development of innovative practices in the field of vocational education, training and

assistance at tertiary level.

… The expected output and results

PRODUCTS

1. Sociological Research containing different territorial

lectures of the discussed items : from real case histories of Arezzo’s experience to European “scenarios”...

… The expected output and resultsPRODUCTS

2. Modelization of a new consulting and assistance

approach for transfer a business to a woman – Specific Credit modelization...

Coming out Enterprise/Entrepreneur New woman entrepreneur coming in

… The expected output and resultsPRODUCTS

3. Interactive CD-ROM , translated in 5 languages, for

auto or assisted check-up to the coming-out and “coming out” and “coming in” enterprise/entrepreneurs...

Documents

TRANSFER a BUSINESS to a WOMAN : GENDER ANALYSIS and TRAINING & CONSULTING SUPPORT MODEL