Boomers Own Many Small Businesses,
What Happens When They Retire?
Baby boomers own 40 percent of all small businesses in the U.S, and 1 in 3 Americans rely on boomer-owned businesses for their income. Millions rely on baby boomers’ businesses, from vendors, suppliers and freelancers. With so much wealth and dependence on the baby boomer generation, what will happen when they retire?
10,000 baby boomers retire every year, and they aren't passing their businesses to their children or other business owners. As new generations have reasons to not continue their family businesses, like an array of employment opportunities, and the recent gravitation to jobs in tech and media, all options their parents never had.
58 percent of small business owners don't have a succession or transition plan. Many can't afford to succeed their business as the rising costs of retirement for boomers to sell their companies. Since 2004, long-term care options, like assisted living and skilled nursing, have risen in cost by 60 percent, another obstacle to saving boomer-owned businesses.