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”

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 Lombardy :the italian economy engine Lombardy represents more than 1/5 of Italian richness and, for important economic variables, concentrates high shares on the national total. Fonte: Unioncamere Lombardia

SMALL MEDIUM BIG WORKERS 1-2 3-9 10-49 50-249 250-499 500 > N. OF ENTERPRISES 530.000 150.000 51.000 7.500 1.250 250 PERCENTAGE 72% 20% 7% 1% 0,20% 0,03% Enterprises dimension in Lombardy 97% of enterprises have less than 20 workers (mean 5,5) Fonte: ISTAT

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 numerLombardy 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 Fonte: SDA Bocconi

The data in Lombardy The enterprises with less than10 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) 1 Example: ancient jobs

… the consequencies Impoverishment of the territory since an enterprise is included in a territorial network 2 example: The network of services for the historic centres and the artistic shops which are going to disappear

… the consequencies 3 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

… approaches 1 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 …) to the reference market

To the kindof property/transfer … approaches 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

… approaches 2 Multidimensional / interdiscipliscinaryapproach psychological organizational fiscal-legal financial It is necessary To consider different aspects

… the succession in a family business psychology organization legal- fiscal financial which is the importance of the 4 dimensions? enterprise typology familiar not familiar xxxx xxxxx xxx xxxx small/medium small/medium xxx = max importance xx=medium importance x= min importance

… approaches 3 The variable “time”: It is necessary to arrive as soon as possible 44% > 60 years 50% near to pension 20% won’t have a successor 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 )

Succession in a family business 5 important aspects Why it’s necessary a “gender approach”

… the succession in a family business 1 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 succession in a family business The small entrepreneur have or not heirs ? When the heir is woman…. 1 If the heir is woman, she isn’ “supposed” to be a successor in business …also for entrepreneurial big dinasties… No “social expectation” in succession or much more less than for a male heir …The business dismission in less traumathic…The sale is undervalued… No

… the succession in a family business 2 It is necessary to recognize the transfer in time and to introduce the heir in the business: 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

… the succession in a family business 2 It is necessary to recognize the transfer in time and to introduce the heir in the business: When the heir is woman…. 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…

… the succession in a family business In a production family business it is important that the heir knows manual labour (technical managerial approach) 3

… the succession in a family business In a production family business it is important that the heir knows manual labour (technical managerial approach) 3 When the heir is woman…. 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… In IN

… the succession in a family 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 4 The family agreement anticipates future problems, quickens decisions, manages business conflicts.

… the succession in a family 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 4 When the heir is woman…. 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 succession in a family business The different gender approach to business start-up 5 When the heir is woman…. 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 !!

Strategic actions:the environmental right conditions for succession 1) It is necessary to pay attention to territorial policies: the business survives if the territory is competitive for this goal it is necessary to create a favourable environment by promoting above all innovation, development, professional training

… strategic actions 2) It is necessary to deal with the problem in a systemic way By creating a mixed co-operating network public istitutions as private istitutions as  Region  Chamber of Commerce  Universities/Schools  Local institution  Associations / Confidis  Banks

… strategic actions 3) What is important to do: to organize sensitization actions to offer advice A to build local and general sdata bank to permit a meeting between old and new entrepreneurs B to build specific support for business transfert to women C D

… strategic actions SENSITIZATION  enterprises  aspiring entrepreneurs  public institutions  financial system Who are the stakeholders?

… strategic actions SENSITIZATION OF STAKEHOLDERS  they must be sensitized on the problem in time  the Associations have an important role ENTERPRISES sensitization • 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 Limits: micro and small family business: There isn’t a precise moment when they think to the problem Attention: with Basel2 the succession policies will influence enterprises rating

… strategic actions SENSITIZATION OF STAKEHOLDERS ASPIRING ENTREPRENEURS above all young people unemployed people women    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

… strategic actions FINANCIAL SYSTEM SENSITIZATION OF STAKEHOLDERS sensitization BANKS To create financial instruments to assist the turnover Exemple :  dedicated resources and financial products  profitabler interest rates  advice supports

… strategic actions The Confidis role What they are mutual guarantee created by associations of enterprises which offer advice and guarantee funds to let the smes obtain bank credit 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

… strategic actions Strength points of Confidis:  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

… strategic actions Specific support OF STAKEHOLDERS ASPIRING ENTREPRENEURS women  • it is necessary todevelop 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

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 Summary :

Donna cerca Impresa in Europa (Woman searching for Enterprise in Europa ) WHAT IS: a TECNOLOGY TRANSFER… 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 CHANCE of meeting and business… the Project represents for the Touscany’s women entrepreneurs an important chance to know european partners and to establish networking policiese and strategies…

The EUROPEAN PROJECT PARTNERS APMCR (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 succession Case 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 results PRODUCTS 2. Modelization of a new consulting and assistance approach for transfer a business to a woman – Specific Credit modelization... New woman entrepreneur coming in Coming out Enterprise/Entrepreneur

… The expected output and results PRODUCTS 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...

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