Factsheet for measure
DE-2006-1/2557
– measures in Germany
Nexxt-change (Exchange mechanism for people interested in business start-ups and enterprise owners)
Nexxt-change Unternehmensbörse
Background information
The aim of this plattform is to secure the transition of enterprises to new owners. In this way, it contributes to securing and maintaining jobs. It is especially relevant in the current context, when many enterprise owners are reaching retirement age. The plattform is hosted by the Federal Ministry of Economics and Climate Change (BMWK) in cooperation with several employers and business associations.
Content of measure
This instrument is an exchange mechanism for people interested in business start-ups and enterprise owners intending to sell their business. In practice, regional centres (branches of local savings banks, local Chambers of Commerce and Industry or other institutions at local level) publish offers and organise or consult on the matching process. Networking events are arranged for future enterprise starters and those enterprise owners who did not manage to find a suitable successor. The main tool is a web plattform onto which interested companies and potential successors can register.
The amount of information on businesses that is publicly available in the database is restricted to a few facts in order to avoid a business being easily identified. The database can be searched by sector and location. The partners of the initiative organise seminars and other activities under the label ‘nexxt’. The aim here is to provide information about the generational change, business start-up and company formation and to show concrete ways of solving problems. Information on business succession, locating funds and financing a start-up are also available on the platform. General services are provided free of charge, although a fee might apply to additional services provided by intermediaries.
Use of measure
Approximately 5,396 (as of June 2020) enterprise owners are currently seeking successors who are willing to take on their enterprises, and capable of doing so. Roughly 1,598 (as of June 2020) people present themselves as interested in taking over an existing enterprise. About 800 local regional centres act as cooperation partners (as of June 2020). The Association of German Chambers of Industry and Commerce (DIHK, 2019) reports that around 1,000 enterprises are being transferred each year through the platform.
Since 2006, nexxt-change arranged over 12,000 transitions of enterprises. According to IfM Bonn,150,000 enterprises will need a successor in the period from 2018 to 2022. However, DIHK (2019) points out that successors are particularly scarce in the East region of the country and call for better transfer and tax policies which can further support business transfers.
A study from IfM Bonn (Schlömer and Kay, 2008) highlights that nexxt-change involves a wide range of network partners. Offers are directed to both company owners looking for a successor and potential successors. Evaluation research (2013) shows that 'nexxt-change' gained in popularity and the number of users rose from around 80,000 in February 2011 to nearly 100,000 users in June 2012. The website was relaunched in February 2011. A usability test of the website showed positive results (concerning design, search tools and finding relevant information). Positive assessment of cost-benefit ratio in terms of published offers, successions and saved jobs as well as funds spent for the programme (also in comparison to similar publicly funded instruments).
A study from the IfM Bonn (Schlömer and Kay, 2008) shows that only 20.4% of company owners use online tools to look for a business successor; this compares to 46.8% who approach a consultant and 45.6% who approach a chamber of commerce or guild. Many company owners avoid publicity when looking for a potential successor.
Evaluation research on the platform nexxt-change (2013) shows that the number of monthly entries of new offers is decreasing. Since the total number of offers remained fairly stable, offers in the database get older. 61% of the platforms' clients seek more consulting support by regional partners on the topic of finding a successor for their business. In addition, the research shows that users wish for more information on offered companies. This would help the matching process. Around one in every five negotiations on business succession is successful. However, as the analysts highlight, the platform nexxt-change has only limited options to improve this rate. Negotiation failure are most often related to financing difficulties or different price ideas. This can only be improved by additional support instruments.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Applies to all businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Agreed (outcome) incl. social partner initiative
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Form
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Not applicable
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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Only employers' organisations
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Main level of involvement: Unknown
Involvement
The following employers and business associations are partners to the initiative: the German Confederation of Skilled Crafts (ZDH), the Association of German Chambers of Industry and Commerce (DIHK), the central organisation of the cooperative banking group (BVR) and the German Savings Banks Association (DSGV). Regional or local members of the initiatives' partners also serve as regional centres as do other institutions.
Views and reactions
Unknown
Sources
