Finland’s Succession Crisis Is a Myth — The Real Problem Is Readiness, New Analysis Warns

Finland is widely perceived to be heading towards a major “succession crisis” as tens of thousands of ageing entrepreneurs prepare to retire. However, a new analysis by Helsing Business Group (“HBG”) contends that the popular narrative is misleading — and that Finland’s real challenge is far more manageable than most policymakers believe.

According to HBG, the problem is not a lack of successors. The real issue is that most Finnish SMEs are not designed to succeed.

More than 70 per cent of family businesses lack a formal succession plan, and 77 per cent have not appointed a successor. Companies often operate with undocumented processes, tacit knowledge held by the founder, and informal governance frameworks that hinder due diligence and make securing finance uncertain. These deficiencies mean that even healthy, profitable businesses become difficult, and sometimes impossible, to transfer.

“Finland is not running out of successors,” HBG states. “Finland is running out of successor-ready companies.”

A transfer wave is approaching, but it is not a threat.

Over the next decade, more than 50,000 Finnish employer businesses will need to be transferred. This accounts for about one-third of the country’s SME sector, which forms the backbone of Finnish employment and regional economic stability.

Such a wave is not inherently harmful. In other European markets, similar shifts have led to consolidation, modernisation, and the growth of stronger mid-sized companies. However, in Finland, the readiness gap means many firms reach retirement age before becoming structurally ready for transfer.

“This timing mismatch is what creates closure risk,” HBG warns. “Not successor scarcity.”

Thin buyer markets worsen the difficulty

Finland’s geography worsens the challenge. While buyer interest remains relatively strong in major cities, many regions have very limited successor pools.

Selling a technical services firm or manufacturing company in Uusimaa may attract interest from managers, consolidators, and investors. Selling the same type of business in North Karelia or Kainuu may mean finding fewer than a dozen credible buyers nationwide.

“In thin markets, unreadiness isn’t just a disadvantage — it’s a deal-breaker,” HBG notes.

Owners delay planning for rational reasons

HBG also contests the common narrative that Finnish entrepreneurs avoid succession planning because of emotional attachment or cultural resistance. The analysis suggests that owner hesitation is mostly rational.

Finland’s tax system, regulatory complexity, and fragmented advisory services create significant administrative barriers to planning. Without clear pathways or incentives, owners often delay the process — not out of reluctance, but because the system makes early planning difficult.

“This is a structural issue, not a psychological one,” HBG maintains.

Successors have not vanished, but they have become more professional.

The traditional idea of children inheriting the family business is fading, replaced by a broader, more professional successor network that includes management buy-ins, acquisition entrepreneurs, industry buyers, family offices, and Finnvera-backed financing options. These players are willing to acquire — if companies are prepared to be sold.

A moment of risk and opportunity

HBG concludes that Finland is at a critical inflexion point. If readiness remains low, closures will increase, especially in regional economies. However, if Finland invests in preparation, including documentation, governance, financial transparency, and transition planning, the wave of ownership could become one of the nation’s most significant economic renewal cycles.

“The question is not whether the wave arrives,” the analysis states. “The question is whether Finland prepares.”