Canadian small business owners face succession crisis

A report from the Canadian Federation of Independent Business (CFIB) indicates that a majority of small business owners in Alberta and British Columbia plan to exit their businesses within the next decade.

In Alberta, 60 per cent of owners intend to exit, citing retirement, high operating costs, and burnout as primary drivers. More than half of these owners report that finding a replacement is a significant obstacle.

In British Columbia, the CFIB warns of a ‘succession tsunami’ as aging entrepreneurs prepare to retire. The report notes that business exits have outpaced new entries in the province for five consecutive quarters. Only 4 per cent of B.C. owners have a formal succession plan in place.

Key challenges identified include finding suitable buyers or successors, which is the primary hurdle for 48 per cent of B.C. owners, as well as business valuation and time constraints. B.C. owners expressed high levels of concern regarding the protection of employees and the continued support of local communities following their exit.