Few Small Businesses Owned By Baby Boomers Have Succession Plans
2.34 million small businesses throughout the United States are owned by baby boomers. Additionally, these business employ over 25 million people. These figures were calculated from data provided by the U.S. Census Bureau. Given that a portion of these employees support families, this means that small businesses owned by boomers financially sustain a potential 100 million people.
However, according to a survey conducted by Wilmington Trust, 75% of boomer business owners do not have a succession plan to ensure that the small business continues running.
"If our nation's baby boomers don't get more focused on planning for the sale or transition of their businesses on an urgent basis, then we'll have millions of citizens whose jobs and careers are in peril and millions more who will not be able to properly retire," Jim Blasingame said.
Additionally, millennials have not expressed strong interest in one day taking over family-owned businesses, further putting the future of these small businesses in danger.
Some have assumed that private equity investors will acquire small businesses as an investment asset. However, mergers and acquisitions have decreased globally by 16% during the third quarter of 2019.
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