BABY BOOMERS RETIREMENT CREATES NEW BUSINESS OPPORTUNITIES
July 31, 2023
Baby Boomers, those born between 1946 and 1964, account for a significant portion of the small business community in the United States and many are now approaching retirement age, with the last of the boomers reaching full retirement age in 2031. According to industry experts, a “Silver Tsunami” is expected to occur as these owners exit their businesses in waves offering more businesses for sale in 2023 and 2024. As many of these baby boomers look to plan their exit, and sell their business to enter retirement, this demographic shift will have the potential to open new avenues for business ownership.
According to the BizBuySell’s quarterly Insight Report 46% of surveyed buyers said that they would like to leave their current job to take control of their future, with an additional 13% of newly unemployed people saying the same. By acquiring well-established businesses, young entrepreneurs will be able to leverage the goodwill that baby boomers have built over the years and contribute to the local economy. The purchase of an existing business can reduce startup time, provide a built-in customer base, and enable lenders to evaluate the financial performance of the existing business.
In addition to offering young entrepreneurs the opportunity to purchase an established business, it also fosters in a new generation of investors. It’s important to keep in mind that not every baby boomer is heading for the exit; some choose to invest in new ventures for younger generations of entrepreneurs as an alternative to heading for retirement. As a large and influential generation, many continue to be actively involved in a meaningful way through mentorship and investments in small businesses. A new generation of business owners can benefit from their years of knowledge, skills, and expertise, setting them up for success in the world of small business. During the next few years, there will be many new opportunities created by the expected exodus of business owners, paving the way for the next generation of entrepreneurs.