By 2027, 47 percent of all Connecticut business owners are expected to be 55 or older, according to a new report, signaling a dramatic increase in executives and entrepreneurs who will reach retirement age over the next 10-15 years.
West Hartford accounting and consulting firm BlumShapiro and the University of Connecticut have released the first installment of a report called, “The Baby Boomer Effect.” It examines the state’s business landscape and the impact an aging generation is having on Connecticut.
Among the reports other key findings: The rate of younger business “buyers” to older business “sellers,” which 15 years ago was 2-1 in favor of buyers, has now dropped to a ratio of nearly 1-1, the report said.
“The ramifications of an aging population have received a lot of attention over the last several months, from effects on our health system and Medicaid, to the pending skills gap in our workforce,” Blum Shapiro chief marketing officer Thomas DeVitto said. “This report focuses on quantifying the significant rise of business transfers that will be associated with the aging of business owners over the next several years and the direct and indirect effect it will have on business.”
Professor David Souder of the UConn School of Business said small businesses represent 87 percent of all businesses in Connecticut, and with so many owners nearing retirement age, the implications run deep. He said, “The declining ratio of buyers to sellers may not only encourage sellers to work longer in the hope of getting a better price, but ultimately could lead to them selling their companies at a discounted rate without their desired outcome.”