Successor Wanted: Who Will Take Over Austria's Businesses?

The number of entrepreneurs looking for a successor for their business has been steadily increasing for years. From 2020 to 2029, successors will be sought for around 51,500 businesses. Nearly half of the companies are passed on within the family, although this trend is declining. Successful handovers usually lead to more revenue, higher investments, and in about a third of cases, more jobs, the Austrian Economic Chamber (WKÖ) announced on Tuesday.

Last year, 7,792 businesses were handed over to successors - 4.9 percent more than the previous year. Since 2020, around 35,000 businesses have changed ownership. Nearly a third (30 percent) of these were in the trade and craft sector, more than a quarter (26.4 percent) in tourism and leisure industries, and a fifth in trade.

Particularly Many Handovers in Gastronomy and Craft

In terms of industries, gastronomy dominated, followed by business consulting, accounting, and information technology. Somewhat surprisingly, foot care, cosmetics, and massage follow in the ranking. Only then come mail order, online and stationary trade, as well as the hotel industry.

Nearly 692,000 jobs depend on the 51,500 business handovers expected between 2020 and 2029, notes Lukas Sprenger, Federal Managing Director of the Young Economy. Thus, the topic of business succession affects 23 percent of all employer businesses and 22 percent of all employees in employer businesses during this period.

More Revenue, More Investments, More Jobs

Three-fifths of the acquired businesses (61 percent) were able to increase revenue, about two-thirds invested more than their predecessors, and 36 percent hired additional staff, the WKÖ further reports.

"Targeted measures are required to facilitate and secure business successions," notes Bettina Dorfer-Pauschenwein, Federal Chairwoman of the Young Economy.

The interest group therefore welcomes the increase in the exemption amount for capital gains announced in the government program. This is to be raised from 7,300 euros to 45,000 euros. Another demand from the economy is the introduction of a participation exemption of up to 100,000 euros, which can be deducted over five years.

(APA/Red)

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