Four In Ten Canadian Small Business Owners Are Uncertain About Retirement
A majority of Canadian small business owners may be close to retirement, yet many are not ready to exit their business and are uncertain about their post-business life, according to a new poll conducted by Environics Research for IPC Private Wealth of Investment Planning Counsel.
The survey revealed that 42 percent of Canadian small business owners are unsure about their future and their plans for retirement while more than a third (36%) don’t plan to give up ownership until they are not well enough to manage their business.
More than a third of those surveyed don’t plan to give up ownership until they are ill
Other key findings in the IPC Private Wealth poll include:
- Forty-two percent would rather sell their business; 31 percent would prefer to pass it on to heirs or family members; and 27 percent would like to shut their business down.
- Those with more than $1 million in assets are the most likely to say they would sell their business (51%), while those with $100,000 to less than $250,000 in assets are most likely to prefer passing it on to heirs (39%).
- Forty-eight percent have no plans to seek the help of a financial advisor on business succession planning.
- Only 36 percent reported that their families were aware of their succession plan.
A total of 300 well-qualified respondents across Canada were interviewed by Environics Research via an online methodology from July 24 to August 2, 2018. To qualify for the survey, the respondents had to be 18 years or older, self-employed full-time and small business owners with up to 50 employees. The BDC statistics cited were from BDC’s business succession study that was conducted in partnership with Nielsen among 2,500 Canadian entrepreneurs on their succession intentions.
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