Demand for Direct Business Subsidies: Transfer of Business in Rural Areas

Abstract

Transfer of business is one primary stage in the enterprise's lifecycle. Finnish micro-enterprises will need more support to succeed in acquisitions and successions. In the countryside, enterprise continuity is even more critical than in cities. Business is vital for social welfare. This thesis aimed to understand the demand for the business transfer subsidy. The objective of study was to identify business transfer obstacles and decrease them with business subsidy. The research question was how to direct business transfer subsidy to increase success and volume in Finnish micro and small enterprise transfers in rural areas. The research method was a qualitative approach with a case study research design. The general interview guide was selected interview type. Interviews of business transfer experts and secondary data provided the database for the research. The theoretical framework was a combination of obstacles to business transfers, suitability of business subsidies, and the business transfer process. The qualitative method gave an in-depth understanding of the research problem. A key finding predicted that business transfer subsidies for rural area micro-enterprises would increase Finland´s success rate and volume of business transfers. In addition, findings indicated the target group and base of the form of subsidy. The commissioner of the thesis – the Ministry of Agriculture and Forestry of Finland, uses the information to encourage a business environment in the rural area of Finland.