The Challenge
There are two challenges. The first lies in the transition between generations, which can be complex and requires careful planning to ensure the continuity and growth of the business. The second is finding new franchisees, meaning individuals who are embarking on entrepreneurship as part of the expansion of new franchises in a territory.
The continuity and growth of family businesses largely depend on the ability of future successors to effectively manage the generational transition. This management faces obstacles such as succession planning, preserving the company culture, maintaining competitiveness in the market, but most importantly, it involves the vision of both the successor and the predecessor.
The vision of the successor and that of the predecessor can be aligned, complementary, or even opposed. In any case, these family businesses need resources and support on both practical (taxation, etc.) and emotional levels.
HEC Montréal’s Families in Business has been working on this topic for several years. This organization supports family businesses in their succession planning and aligning the interests of the predecessor and successor to successfully address these challenges.
This organization publishes a study on family businesses every two years, covering topics such as inclusion, succession, and the profiles of leaders to share with a wider audience.
The Solution
HEC Montréal’s Families in Business has commissioned CIVISION to visualize all the data collected from family businesses by Families in Business HEC Montréal on an interactive platform. In other words, the platform would consolidate all the information contained in their studies. An example of the data available on the platform: 36% of medium-sized Quebec businesses have no succession plan.
Why this platform? The reasons are multiple.
The first is to help successors position themselves when they feel ready. Indeed, successors can compare their situation with that of other successors in similar businesses, allowing them to better understand the challenges and opportunities ahead. For example, a 25-year-old woman who feels ready to take over her parents’ family business in the manufacturing sector can visualize the average age of business successors in the same industry, helping her envision her future.
The second reason is to demonstrate to the Quebec government the importance of supporting these family businesses in their entrepreneurial succession. This reason is based on the recognition of the challenges these businesses face. By highlighting these challenges through concrete data and visual analyses, the interactive platform raises awareness among policymakers about the specific issues family businesses encounter. By providing clear and detailed information about the current situation and needs of family businesses, the platform aims to promote entrepreneurial succession and ensure the sustainability of these essential businesses in the Quebec economy.
Finally, another reason is to communicate concrete and factual information and tools to researchers addressing issues related to entrepreneurial succession. This initiative aims to support academic and applied research in this field by providing researchers with rich data on family businesses. By offering easy and structured access to this information, the interactive platform allows researchers to explore and analyze trends, challenges, and best practices in entrepreneurial succession.
Result
The impact of this initiative is multifaceted. It enhances the confidence of potential successors by providing them with a better understanding of their situation and the challenges they face. Furthermore, the platform promotes succession planning by providing concrete evidence of the importance of government support in the growth and sustainability of these businesses.
