Business

The Quebec City region suffers from a lack of entrepreneurial succession

A study commissioned by the Quebec Chamber of Commerce and Industry (CCIQ), in partnership with Raymond Chabot Grant Thornton and Desjardins, shows that the delay of business succession plans in the Quebec City region has a total economic impact of $ 200 million. $.
The ‘re hampered investments account for their $ 97 million. “More than half of managers [54%] confirm that investments are affected in a succession context. This is undermining the development of our businesses, “said Eric Dufour, Vice President, Partner and National Leader in Entrepreneurial Succession at Raymond Chabot Grant Thornton.

The president and CEO of the CCIQ, Julie Bedard, is not particularly alarmed by the results of the survey, but if Quebec wants to remain a dynamic city economically, all the actors will have to take the problem head on, and bring solutions to help entrepreneurs.

“People are able to take over a business, even if they do not want to create one. Investments are also necessary, that’s what will interest the next generation. ”

Another highlight of the survey of 1827 entrepreneurs from January 25 to February 25, only 10% of them know the programs to help them in their succession plan. “Yet funding is a crucial step in the success of the transfer process. You have to inform people, take them by the hand. It’s normal that there is resistance, it’s their whole life in there, “said Richard Quinn, senior director of transfer of business at Desjardins.

Human aspects

Beyond the financial and tax aspects, many entrepreneurs are concerned about human aspects in succession planning.

“We have generational differences. Young people today want a quality of life. Before, there was a person at the head of the company, now it takes two or three people, “said Mr. Dufour.

There is good news to all of this. 60% of entrepreneurs want to talk about the next generation with their employees.

“Right now, people are changing jobs easily, but if we form a team to talk about the next generation, it will create employee retention. It can also be a good way to counter the labor shortage, “said Dufour.

Possible solutions

To alleviate this problem, the study’s report recommends, among other things, improving the transmission of information to enable entrepreneurs to know the existing financial support programs. “Entrepreneurs are all mixed up, they do not know which door to hit,” insists Mr. Dufour.

The report also recommends that a progressive approach be promoted by maximizing good intergenerational cohabitation, and that a training program and plan be put in place to prepare entrepreneur-takers.

The Federation of Quebec Chambers of Commerce and Industry will meet with the federal government next week to call for tax fairness in the area of ​​intergenerational corporate transfers.

For now, it is more interesting for an entrepreneur to sell to a foreigner than to transfer his business to his child. “An entrepreneur who sells to his neighbor across the street is $ 860,000 exempt from selling to his child. Many entrepreneurs consider this an injustice, “laments Eric Dufour, vice-president, partner and national leader in entrepreneurial succession at Raymond Chabot Grant Thornton.

According to Mr. Dufour, many entrepreneurs are delaying their succession plan to await a tax change. “By allowing tax exemption, the government will promote growth and investment. It will collect taxes that are currently dormant in SMEs. ”

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Alan Carter
Alan Carter
Alan Carter has been a reporter on the news desk since 2015. Before that she wrote about young adolescents and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Koz Post, Alan Carter worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella.