SME owner-manager representations of firm transfer

Abstract

In a socio-economic context in which there are more than 100,000 annual transfer operations involving small and medium enterprises (SMEs), the purpose of this study is to understand the genesis of the firm transfer process in the context of French owner-managers and to contribute to a 'theory-based synthesis'. Focusing on an actor central to the success of the transfer process - the seller - this article underlies the major role of the mental models developed at the very beginning of the transfer process for subsequent stages. Business transfer is considered here as a socially constructed operation. By mobilising several complementary theories developed in the field of entrepreneurial cognition, a typological analysis leads to an identification of the main types of mental representations developed by potential sellers about business transfers, with four clusters. The sample used for this includes 105 potential sellers who are owner-managers in France. The results shed light on different aspects related to the origin of the process that leads to the transfer of a business and particularly highlight the major role of experience. From this analysis, we make several proposals that could impact public policies implemented in this area, emphasising the government's cognitive role.