The 2008-09 recession prompted many baby boomer entrepreneurs to delay their retirement plans and stay in business longer than they had anticipated, according to a new report, Passing on the Business to the Next Generation, based on survey data from the Canadian Federation of Independent Business (CFIB).
“The recession clearly had an impact on succession planning,” Doug Bruce, CFIB’s vice-president of research, said in a release.
“Instead of passing the business on to the next generation, some small businesses decided to hold onto their business until its value returned to pre-recession values.”
Almost a quarter (23 per cent) of business owners said they have delayed the timing of their exit date between one and four years.
That will have economic impacts — Canadians will see a massive transfer of small business assets in the next decade — possibly more than a trillion dollars.
But we also suggest it will have an impact on volunteer organizations and service clubs who rely on those energetic new retirees who have full days on their hands with nothing to do.
It’s those “young” retirees who have a lot to offer volunteer organizations. Especially if they bring with them a business knowledge that allows them to work at higher levels in the groups.
It will be interesting to see how this all plays out in years to come.