Local businesses are the backbone of rural regions. They provide employment and services that help keep residents in the area and prevent migration to cities. Ideally, businesses can even enhance the region’s appeal. They offer necessary services like grocery stores, healthcare, and other functions critical for everyday life and resilience. Without businesses, many rural areas would wither and lose their vitality.
According to the 2024 Business Transfer Barometer (omistajanvaihdosbarometri 2024), 21% of businesses estimate they will cease operations when the entrepreneur steps down. 48% anticipate the company will be sold to external successor, and 25% expect an internal family succession. In Northern Ostrobothnia, 29% of businesses anticipate closure when the entrepreneur gives up main responsibility. Although succession prospects have improved, it is concerning that nearly half of the businesses likely to be put up for sale in the coming years are not in good condition, even by the entrepreneur’s own assessment.
Business continuity ensures economic stability and growth. When businesses thrive, they can reinvest in the community, create new jobs, and enhance local infrastructure. This creates a positive cycle where economic well-being increases and the region becomes more attractive. According to the 2024 Business Transfer Barometer, about half of the businesses grew after a succession. Growth also tends to foster further growth intentions — realized growth encourages even more growth.
Businesses are not just economic actors; they are also key members of their communities. Local businesses foster community spirit by providing venues and events, supporting local organizations like sports and hunting clubs, village associations, and participating in charity efforts. This communal support is invaluable for maintaining the social networks essential to rural life.
The use of digital tools is crucial for the success of businesses in rural areas. Digital marketing, e-commerce, and remote work opportunities can significantly expand customer bases and improve competitiveness. With digital tools, businesses can enhance operations, improve customer service, and reduce costs.
Promoting digital tools requires investments in infrastructure, such as high-speed internet connections, as well as investments in training. It also demands purposeful development efforts and innovation. Collaboration between local and national actors is essential to ensure rural businesses can fully leverage digital opportunities.
Business transfers are critical not only for business continuity, but also for the vitality and resilience of the region. When a founder or owner decides to retire or switch fields, it’s important to ensure the business continues under new leadership or owner. This requires careful planning and support during the business transfer process. Many regions offer free, low-threshold succession advisory services, and it is wise to take advantage of these services as early as possible.
Preparing a business for sale typically takes at least one full financial year even under ideal circumstances. Selling a business is not an immediate process either, as finding the right buyer can be challenging — expert services should be utilized. Professional services, such as those provided by business brokers or law firms, should be seen as an investment in both the entrepreneur’s and the business's future. With the help of a skilled expert, many potential issues and disputes can be avoided.
To promote successful business transfer, training and advisory services should be provided to both exiting and new entrepreneurs. Networking events and mentoring programs can help succersors find the resources and support needed for a successful continuity. In many regions, these services are offered through various projects and initiatives.
Although business continuity is crucial, it is not guaranteed. Rural businesses face many challenges, including labor shortages, infrastructure deficiencies, and difficulties in accessing financing. Addressing these challenges requires collaboration among local, regional, and national actors. International cooperation is also important, as there are good practices, regulations, and legislation abroad that we can learn from to develop our own systems at both the regional and national levels.
Business continuity is essential for the vitality of rural areas. Local businesses provide employment, services, and community support — all critical for regional well-being. Despite the challenges, with collaboration and the right support measures, rural businesses can thrive, and the vitality of these areas can be preserved.
The three-year BOCOD project (Boosting Continuity and Digitalisation of Rural Region Businesses), launched in April 2025, supports rural SMEs and micro-enterprises in strengthening business continuity and facilitating business transfers in Finland, Ireland, and Iceland. BOCOD offers a comprehensive solution that combines digital tools and services with succession support. The goal is to improve businesses' ability to adapt to changes in their operating environment and ensure continuity.
The Kerttu Saalasti Institute at the University of Oulu is a partner in the BOCOD project. The project is coordinated by Munster Technological University (Ireland) and other partners include Business Joensuu, Lapland University of Applied Sciences, Westfjords Regional Development Office (Iceland), and East Iceland Regional Development Office (Iceland). The project is funded by the Interreg Northern Periphery and Arctic Programme.
More information about the project: BOCOD – Boosting Continuity and Digitalisation of Rural Region Businesses
Reference (in Finnish):
Varamäki, E., Joensuu-Salo, S., Viljamaa, A., Tall, J., & Katajavirta, M. (2024). Valtakunnallinen omistajanvaihdosbarometri 2024. OV-Foorumi.
Author: Laura Veikkola, M.Ed., Project Researcher, University of Oulu Kerttu Saalasti Institute, Micro-entrepreneurship research group MicroENTRE
Photo: Laura Veikkola
In Kerttu Saalasti Institute's blog we write about the topics of the Institute's research groups, micro entrepreneurship education and the Institute's general topics. The authors are researchers, experts and members of networks.
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