Generational transfer in small business operating in Finland
Sundholm, Sini (2017)
Sundholm, Sini
Satakunnan ammattikorkeakoulu
2017
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201702242671
https://urn.fi/URN:NBN:fi:amk-201702242671
Tiivistelmä
Purpose of this thesis was to discover different possibilities for generational transfer in a small business operating in Finland. Thesis was ordered by a case company that is a private entrepreneurship founded nearly 30 years ago. Entrepreneur and founder of case company is legit for retirement and the business has no additional employers. Entrepreneur’s wish was to discover how it would be possible for the viable business to continue operation after founder’s retirement. Reasons for case company’s future possibilities and chances for continuing of operation were the gained reputation of quality and returning customer base.
Research was conducted with care during the course of 3 years as material was collected from literature on subject of business and entrepreneurship, succession experts, current legislation and instructions of official authorities e.g. Tax Administration. Data was also collected by observing entrepreneur’s actions and receiving detailed in-formation on operations of webstore.
Thesis was carried out as a qualitative research due to it being done for a case company, making it’s setting of requirements and circumstances unique by nature. Starting out by clarifying basic knowledge over business form possibilities in Finland it was possible to then further investigate the complex grid of choices and correlations between legislation, taxation and obligations of entrepreneurs in Private Entrepreneurships, General and Limited Partnerships and Limited Liability Companies in Fin-land.
Results of the thesis revealed that while it is possible to draw conclusions over which possible path of succession is most lucrative for case company, it is at entrepreneur’s best interest to contact authorities for expert advice as there are pitfalls in legislation and taxation that can escape even expert’s attention. Based on this study it was possible to also state that while taxation and legislation are equal to all businesses at the point of succession, the individual factors make each generational transfer process a one of a kind. Largest defining factors on which procedure is most beneficial were revealed as amount of time available for implementation of transfer and financial goals of transfer parties.
Research was conducted with care during the course of 3 years as material was collected from literature on subject of business and entrepreneurship, succession experts, current legislation and instructions of official authorities e.g. Tax Administration. Data was also collected by observing entrepreneur’s actions and receiving detailed in-formation on operations of webstore.
Thesis was carried out as a qualitative research due to it being done for a case company, making it’s setting of requirements and circumstances unique by nature. Starting out by clarifying basic knowledge over business form possibilities in Finland it was possible to then further investigate the complex grid of choices and correlations between legislation, taxation and obligations of entrepreneurs in Private Entrepreneurships, General and Limited Partnerships and Limited Liability Companies in Fin-land.
Results of the thesis revealed that while it is possible to draw conclusions over which possible path of succession is most lucrative for case company, it is at entrepreneur’s best interest to contact authorities for expert advice as there are pitfalls in legislation and taxation that can escape even expert’s attention. Based on this study it was possible to also state that while taxation and legislation are equal to all businesses at the point of succession, the individual factors make each generational transfer process a one of a kind. Largest defining factors on which procedure is most beneficial were revealed as amount of time available for implementation of transfer and financial goals of transfer parties.