Baby boomers, although certainly starting to near the age of retirement, still represent one of the strongest economic forces in the U.S. They currently own 40% of small businesses and franchises, and while they may not be looking for those businesses to go anywhere. They may also have no choice.
58% of all small business owners have no plans for a transition or succession when they leave the business. The majority even do this out of choice, saying they enjoy being the one to run the company and have no interest in its fate after the case. On top of this, when talking about baby boomers in specific, 45% have no retirement plans.
This means that almost half of all baby boomers need to look for other means to secure their retirement or a comfortable life after work, and for small business owners, this means selling. This all paints the picture of small businesses disappearing with the baby boomers, but it’s not quite that simple.
Luckily, many millennials are taking on the responsibility of these small businesses. More and more people are looking to leave the average corporate job and make their own business, and this is where the intersection occurs. Baby boomers selling to millennials is just one way in which baby boomers are passing the torch to the next generation.
And while that in no way will comprehensively account for the future of small businesses. It gives a bit of hope to the future of the little guy in America. Baby boomers are not going to leave the world by taking everything they worked for with them, they’re going to pass on the wealth and do their best to ensure the future they see fit.
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