The community (the city, the region, the country, etc.) is an important factor for the business as well as for the transfer process and the actors involved in it. A community’s unique culture has numerous aspects and characteristics, including values and social norms that prescribe ways of doing things and interacting with others. For the transfer to be a success, it is essential to understand the behaviors and practices that are accepted in your community.
- In what region of the world is your business located?
- What are your community’s fundamental values? The following questions highlight key issues related to fundamental values:
- What takes precedence, family or business?
- Are there norms related to the transfer of a business within a family (for example, the right of primogeniture, which stipulates that the transfer should be to the advantage of the first-born son)?
- Are there instead norms that favor a transfer to the most competent successor?
- What is the place of entrepreneurship in your community?
- How is entrepreneurial success valorized?
- What is the place of business in the community?
- How long has business been a part of the socioeconomic landscape of the region?
- What percentage of the population works in business?
- Are jobs held from generation to generation by members of the same family?
A good understanding of the fundamental values of your community makes it possible to determine which types of transfer are favored there. It also allows you to anticipate the degree of influence that the community and the family will have in the transfer or the succession process.