Aging Small-Business Owners in the U.S. Raise Concerns Over Succession Gap
A growing number of small-business owners in the United States are approaching retirement age without clear plans for who will take over their companies, raising concerns about the future stability of a key sector of the economy. According to recent data highlighted by Forbes, nearly half of American small-business owners are aged 55 or older, yet only about 54% have a formal succession plan in place.
Experts warn that this gap could lead to a wave of business closures over the next decade if ownership transitions are not properly managed. With millions of jobs and a large share of economic activity tied to small businesses, the consequences could be significant for local communities and the broader economy.
A Major Pillar of the U.S. Economy
Small businesses form the backbone of the U.S. economy. Data from the U.S. Small Business Administration shows that these enterprises employ more than 62 million Americans and contribute roughly 43% of the nation’s gross domestic product.
If a large number of these companies were to shut down rather than transition to new leadership, the impact could ripple across industries ranging from construction and retail to professional services and manufacturing.
William Fry, founder of American Operator, says small businesses represent one of the clearest examples of economic opportunity in the United States.
“They’re huge creators of wealth,” Fry said in a recent interview. “In many ways they represent the purest form of the American Dream — people building something from the ground up and creating a better life for themselves and their families.”
Why Succession Planning Is Difficult
Despite the importance of succession planning, many small-business owners delay the process. For many entrepreneurs, their companies are more than just financial assets — they represent years of personal relationships, reputation, and hard work.
Owners often spend decades cultivating customer trust, building networks within their communities, and developing teams that feel like extended family. As a result, deciding who should take over the business can be an emotional and complex decision.
In smaller towns and close-knit markets, these relationships can be particularly meaningful. Owners may worry about how new leadership could affect employees, customers, and the community that helped build the business.
A Real-World Example: Greenway Painting
One example of a successful transition comes from the town of Jackson in Wyoming, where a painting company called Greenway Painting spent more than a decade building a strong reputation in the region.
The company was founded and grown by husband-and-wife team Erik Hansen and Kassie Hansen. Over 12 years, the couple developed a loyal customer base, with about 85% of their revenue coming from repeat clients.
By 2024, the business had evolved significantly, with around 90% of its revenue coming from commercial projects rather than residential work. That shift reflected years of relationship building and steady growth.
However, after more than a decade of operating the business, the Hansens began considering their long-term plans. Like many small-business owners nearing retirement or a new life phase, they faced an important question: sell the business, bring in new leadership, or close the chapter entirely.
Erik Hansen said maintaining strong relationships with clients played a major role in their decision-making process.
“In a small town, clients often become like friends or family when you’ve worked with them for years,” he explained. “You want to make sure they continue to be well taken care of.”
A New Operator Steps In
The solution eventually came through American Operator, a firm that specializes in connecting experienced entrepreneurs and operators with small businesses whose founders are preparing to step away.
Through the company’s network, the Hansens connected with Anthony Douglas, a former U.S. Air Force combat controller who had previously built and scaled his own painting company in Tucson, Arizona.
Douglas was drawn to Greenway Painting partly because of its relationship-driven approach to business.
“One of the things that attracted me was that the company had grown successfully without traditional advertising or marketing,” he said. “It was built on trust and strong customer relationships.”
In October 2025, Douglas stepped into the role of chief executive officer and became a day-one equity partner, acquiring an initial 10% ownership stake in the company. The agreement also includes a structured path that could eventually allow him to gain majority ownership over time.
The Bigger Picture
Experts say arrangements like this could become increasingly common as the “silver tsunami” of retiring entrepreneurs reshapes the U.S. business landscape.
Over the next decade, millions of small-business owners are expected to retire, creating both risks and opportunities. Without succession planning, communities could lose long-standing companies that provide jobs and services. But with proper transitions, new generations of operators may be able to build on existing businesses and help them grow even further.
For many observers, the key challenge will be ensuring that the knowledge, relationships, and economic value built by aging entrepreneurs are successfully passed on rather than lost.
As more owners begin planning their exits, succession strategies — from employee ownership to outside operators and family transitions — could play a crucial role in shaping the next chapter of America’s small-business economy.
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