Local small businesses are the heart and soul of our communities. What if, in the next 10 years, half of these small businesses were to disappear? Statistics related to the impending transfer of businesses and their success rates suggest that this could indeed be a cause for concern.
Much has been said about the ongoing transfer of wealth, a historic event set to see approximately $1 trillion passed down from baby boomers to Gen Xers and millennials by 2026. This transfer of wealth represents the most significant intergenerational shift of financial resources in Canada's history. While extensive discussions have focused on how this will impact individuals' personal wealth and the need for families to prepare, there's a side to this story that could significantly affect our small businesses, with profound implications for our communities.
Over $2 trillion worth of business assets are primed for transition. However, a critical challenge looms large: only 1 in 10 business owners, a mere 9%, have a formal business succession plan in place to ensure a seamless transition. A recent study by the Canadian Federation of Independent Business paints a striking picture: a staggering 76% of Canada's business owners are preparing to exit their businesses within the next decade. This isn't just a statistic; it signifies the dawn of a new era for Canadian businesses.
Our commitment is to empower local small businesses to thrive by providing the expertise and resources to support them and by educating our communities on the value of succession planning. We are determined to play a pivotal role in fostering a future of prosperity for both our small businesses and the communities they enrich.
Discover more about the importance of succession planning.