An Alberta non-profit organization has implemented a new program that can help rural business owners in Rocky View County (RVC) transition out of their business.
“There are a lot of for sale signs,” said Wendy Gerbrandt, community economic development leader with Community Futures Wild Rose. “[Businesses] have been for sale for several months or years. Without having new ownership come in, these businesses end up closing, which means a reduction of employment opportunities.”
Community Futures’ Succession Matching and Planning (SMP) Project was announced Aug. 27. Gerbrandt said the program focuses on addressing the need for succession planning and education resources within rural business communities. In partnerships with SuccessionMatching, the Alberta Business Family Institute and Commercial Ventures, the SMP program will deliver a series of workshops and access to resources for participants.
“It isn’t so much as to how to close your business, as it is how to succession it over to a new owner,” she said.
The process of business succession, according to Gerbrandt, is integral or owners and entrepreneurs and allows them to begin to think about their businesses long-term. She added traditional succession options, like passing a business down to family members or employees are sometimes unavailable. In that case, a program like the SMP will provide training to ensure businesses can be sold.
“We have to look at it from an economic perspective,” Gerbrandt said. “It is about how to keep the business alive, under new ownership.”
Gerbrandt said research shown to Community Futures indicated a high number of businesses were ready to “succession out” primarily due to the demographics of rural business owners
According to an article released by the Business Development Bank of Canada (BDC), almost 60 per cent of Canada’s small business owners are aged 50 or older. That same age group comprises 32 per cent of Canada’s workforce. Additionally, a BDC study found 49 per cent of entrepreneurs expect to exit their business in the next five years.
“Lots of businesses that do close down because they can’t get new ownership in, it really does impact the rural community,” Gerbrandt said.
Gerbrandt said businesses currently up for sale in need of additional support to attract a buyer could participate in the SMP program. After participating in the training sessions, sellers will be given a coupon valued at $2,000 that allows them to list their business for sale at a cost of $25.
Registration is now open for the SMP. More information and registration is available at wildrose.albertacf.com.
Jordan Stricker, AirdrieToday.com
Follow me on Twitter @Jay_Strickz
