Enhancing digital entrepreneurship and business transfer readiness in sparsely populated and peripherical regions

The Northern Periphery and Arctic (NPA) regions suffer from rapid aging, sparse population, and long distances. The increasing number of young people are relocating to larger urban areas and changes in demography pose several challenges for SMEs and local service provision. For example, there is a huge decrease in opportunities for business transfer/succession. By introducing new digital technologies, the existing businesses could receive a new life by widening the potential market area and engaging the local people (e.g. youth) to take over the business and make their living in the rural communities. This project contributes to Specific Objective 1.2 Reaping the benefits of digitalization for citizens, companies, research organizations and public authorities. The target groups include especially the SMEs and Business Support Organizations of the sparsely populated NPA regions, but also interest groups, higher education and research organizations, and general public will be engaged. The goal of this preparatory project and the Main Project ahead is to enhance the vitality of the sparsely populated areas by supporting and developing business transfer and succession planning processes and developing digital entrepreneurial skills. The preparatory project aims to define the baseline of this development work, engage the best potential consortium of organizations to take over the Main Project activities and complete a successful Main Project application. The challenges of the decrease in the vibrant workforce, and lack of opportunities for entrepreneurs and business transfer/succession impact both businesses and regional well-being, e.g. reduced birth rate, loss of essential services and access to markets. In this preparatory project, the Main Project tackling these challenges will be carefully designed and prepared in transnational cooperation. The project partners represent two geographical zones (Finland, Ireland) and two types of organizations: Business support organizations and Higher Education Institutions, respectively. Partners have both a wide experience in transnational projects including the NPA programme and deep knowledge of the topics to be developed (business transfer/succession processes, digital business models and tools, new technologies, capacity building of entrepreneurs). The value of transnational knowledge sharing and good practice exchange are vital in addressing the unique issues of business transfer and new technologies. Finland’s provision of business transfer awareness and readiness is well advanced compared to Ireland though more development is required in both countries. Research from Finland notes that in the next five years, one in three businesses will seek to transfer their business. In Ireland, only 23% of family businesses have a viable succession plan. There is also a need for capacity building: to enhance entrepreneurial climate and entrepreneurship skills, provide clarity of vision, business models and leadership, and expertise in new technologies. The preparatory project will proceed towards the Main Project application by the following activities: - Baseline study to define the current state of business transfer services and digital business technology readiness in different NPA regions. - Survey and analysis of entrepreneurial and digital readiness across the NPA regions with special target group of young people and in the viewpoint of business transfer /modernizing the business plan by digitalization and new technologies. - Search of potential Main Project partners by benefitting the wide networks of the preparatory project partners. Engagement will be made through active stakeholder communications, joint workshops in the partner regions, discussions with experienced business advisors, and participation in topic-specific events. - Main Project idea development based on the implementation of the earlier preparatory project activities. The approach to boost business transfers /succession by capacity building and introduction of new technologies is new to Northern Periphery and Arctic programme. Transnational cooperation and a mixture of organisation types and experience will create a unique and innovative incubator for a high-quality Main Project application.