The 2008 financial meltdown and its aftermath have blown a hole in the retirement plans of many baby boomer entrepreneurs, according to a report by the Canadian Federation of Independent Business.
Almost one quarter – 23 per cent – of small- and medium-sized business owners surveyed by the CFIB said they have delayed the timing of their exit between one and four years. Another 7 per cent have delayed by five or more years.
Only 5 per cent said the slowdown forced them to accelerate their exit date, according to the CFIB data.
“The recession clearly had an impact on succession planning. Instead of passing on the business to the next generation, some small businesses decided to hold onto their business until its value returned to pre-recession values,” CFIB vice-president of research, Doug Bruce, said in a news release Monday.
Four out of five business owners who have sped up their exit date plan to leave within the next five years, according to the report.
The CFIB survey on business succession planning was conducted between March 9 and May 4, 2011. It was done by mail and web. Results are based on 8,303 responses and are statistically accurate to plus or minus 1.1 per cent 19 times out of 20, according to the lobby group.