Family business succession and new entrepreneurship in Europe

"Whether we like it or not, we live in interesting times. They are times of danger and uncertainty, but they are also the most creative in the entire history of humanity." – Robert F. Kennedy

This is a phrase that, even though spoken in 1966, resonates more than ever today.

We live in a context marked by profound transformations: demographic changes, technological evolution, new competitive dynamics.

Yet it is precisely these discontinuities – which we often perceive as risk – that also represent one of the greatest opportunities for the evolution of the European entrepreneurial system.

In Europe – and in Italy in particular – there are two macro structural trends that are redefining our productive fabric, composed of over 99% of Micro, Small and Medium Enterprises (MSMEs).

These are not just challenges.

They are true transformations.

Two trends reshaping family businesses and European SMEs

1) The generational transition

A significant portion of European entrepreneurship was born and grew between the 1980s and 1990s. A generation of entrepreneurs built solid companies, often leaders in their own segments.

Today that same generation faces a crucial juncture: the leadership transition.

But something has changed.

More and more often:

• there is no natural successor;
• the younger generations have pursued different paths;
• entrepreneurial continuity is no longer taken for granted.

The result is a paradox: healthy, profitable companies with a distinctive position – with no clear succession plan.

2) The dimensional scale and fragmentation

European SMEs are often excellent in terms of product, skills and positioning. But they operate in increasingly complex environments where scale matters.

Competing today means:

• attracting qualified talent;
• investing in technology;
• facing global markets.

In this scenario, fragmentation becomes a limitation, especially in sectors where SME consolidation strategies are becoming critical to remain competitive.

But also an extraordinary consolidation opportunity.

From risk to opportunity

Read together, these two trends tell a different story.

Not just a risk, but a structural transformation of the market:

• on one side, millions of businesses that must face a transition;
• on the other, fragmented sectors that require scale and integration.

This creates enormous space for those who are willing to build, lead and consolidate industrial projects and business succession opportunities.

Three entrepreneurship opportunities emerging from SME transformation

1) Becoming an entrepreneur, starting from an existing business

The first great opportunity concerns those with entrepreneurial ambition.

Today there is the possibility of gradually taking over solid SMEs, working alongside the outgoing entrepreneur and ensuring continuity.

This is not just about "buying a company". It is about:

• picking up an entrepreneurial baton;
• preserving value built over decades;
• leading a new growth phase.

It is a model that allows you to become an entrepreneur starting from already existing foundations, reducing the risk compared to a start-up and leveraging already structured assets, a model increasingly known as entrepreneurship through acquisition (ETA).

2) Professionalising and growing SMEs

The second opportunity concerns those who are already within an SME – or wish to join one in a managerial role.

Many companies have excellent products but still under-developed organisational structures.

This opens up enormous space for managers who know how to:

• introduce more structured organisational models;
• support growth through external channels;
• manage integration processes.

In almost all sectors we are witnessing a progressive industrial consolidation. Therefore, there will be an increasing need for figures capable of:

• coordinating acquisitions;
• integrating different realities;
• building stronger industrial groups.

This is all about having the skills to build genuine industrial projects.

3) Building aggregation platforms (roll-ups)

The third opportunity is more financial and strategic.

It consists of identifying a fragmented sector and, with the support of financial partners, proceeding with a consolidation process.

The so-called roll-up.

The idea is simple:

• identify quality micro-players;
• progressively integrate them;
• build a larger, more efficient and competitive group.

A well-known and concrete example is Hippocrates Holding in the pharmacy sector.

In this type of operation, value is created through:

• economies of scale;
• operational synergies;
• strengthening competitive positioning.

This is a different logic from traditional growth, but equally effective and interesting. It is the strategic construction of sector platforms.

Preserving and scaling family business value

The central point is not to avoid change, but to be able to steer it and transform it into opportunity.

Every company is a concentration of expertise, relationships and industrial culture.

The goal is not to preserve them by leaving everything unchanged, but to inject fresh energy to put these companies in a position to continue growing over time.

Why this is a defining moment for European entrepreneurship

In the coming years we will witness a profound transformation of the European entrepreneurial fabric.

A transformation that will open significant spaces for new entrepreneurs, capable managers and forward-thinking investors.

This is not just a transition phase, but a moment in which the foundations of the future European entrepreneurial system are being redefined.

And, as Kennedy reminded us, the most complex moments are also the most creative ones: which is precisely why those who will be able to seize these challenges with clarity and vision will have access to one of the most relevant long-term value-creation opportunities of recent decades.