Chase Survey Reveals 70% of Small Business Owners Lack Formal Succession Plans
Event summary
- 40% of small business owners plan to retire within the next decade, but only 8% are fully prepared to transition ownership.
- 70% of owners are in early-stage planning or have no formal succession plan.
- Survey conducted in Austin, Detroit, New York City, Salt Lake City, and San Francisco highlights regional differences in retirement timelines and planning stages.
- 66% of owners prioritize both job preservation and maximizing sale value in succession planning.
- Chase launches 'National Treasures' campaign during National Small Business Week to promote succession planning resources.
The big picture
The survey highlights a critical gap in succession planning among small business owners, with significant implications for job preservation and local economies. As a generational transition of ownership is underway, the lack of preparedness presents both risks and opportunities for financial institutions like Chase to provide guidance and resources. The findings underscore the importance of strategic planning in maintaining the legacy and economic impact of small businesses across the U.S.
What we're watching
- Regional Disparities
- How regional differences in retirement timelines and planning stages will impact local economies and business ecosystems.
- Legacy Prioritization
- Whether small business owners' focus on legacy over financial return will affect the valuation and saleability of their businesses.
- Expert Guidance Impact
- The pace at which access to expert support will accelerate succession planning readiness among small business owners.
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