Disclaimer: General educational research only — not legal, tax or financial advice. Figures are survey-based estimates with the limits explained in the methodology. Verify with official sources and a qualified professional before making decisions.
Estate Planning Data & Research → Half of Small Business Owners Are 55 or Older: Who Has a Succession Plan?
For a lot of families, the family business is the estate. It pays the bills, employs a nephew, and is supposed to fund retirement someday. But when the owner gets sick, dies, or simply wants to stop working, the business often has no plan to keep going.
We used Census Bureau data on the age of business owners in every state, plus the most recent national surveys about succession planning, to show how big that wave is.
A business succession plan works best alongside your personal plan. For the personal side, see whether you need a will, a living trust or both.
Downloads
Cite this page URL when reusing findings. Not a substitute for official sources or professional advice.
Key findings
- About half of business owners are at or near retirement age. According to the Census Bureau’s Annual Business Survey, 51.3% of owners of U.S. businesses with employees are 55 or older. That’s about 2.16 million owners: 28.2% are 55–64 and 23.1% are 65 or older.
- In 32 of 51 jurisdictions, most owners are 55+. The share runs from 37.3% in Utah to 62.2% in Rhode Island. Connecticut (58.6%), Hawaii (58.4%), Massachusetts (57.4%), and Maine (56.6%) are close behind. Hawaii has the oldest owners overall, with 31.4% aged 65 or older.
- Many owners have no plan to hand off the business.
- In a 2025 U.S. Bank survey of 1,000 small-business owners, only 54% had a formal succession plan, even though more than half of owners are over 55.
- In a March 2026 Chase survey of about 1,000 owners, 40% plan to retire within 10 years, 70% are in early-stage planning or have no formal plan, and only 8% say they’re fully prepared to transfer ownership.
- The business is often the family’s paycheck. 72% of employer-business owners told the Census Bureau the business is their primary source of personal income. Among owners who’ve run a business before, closing was more common than selling: 8.4% of all owners said an earlier business of theirs is no longer operating, while 2.9% said one was bought by another company or person.
An important note about the numbers
The Census Bureau counts owners by age, not businesses. A firm with three owners is counted three times, once per owner. So “51.3% of owners are 55+” does not mean 51.3% of businesses will close. Many firms have younger co-owners, and many older owners will sell, pass the business to family, or keep working. We don’t estimate a number of closures, because no public data set measures that directly.
State-by-state table
Notes:
- Firms, employees, and payroll cover all employer firms in the state, large and small.
- Owner ages cover owners of employer firms who reported their age.
- Family-owned share is among firms that answered that question.
- * = Census reports a relative standard error above 10% for the 65+ share (Alaska, North Dakota, South Dakota, Vermont), so treat those figures with extra caution.
| State | Employer firms | Employees | Annual payroll | Owners (age reported) | Age 55–64 | Age 65+ | Age 55+ | Family-owned (of firms answering) |
|---|---|---|---|---|---|---|---|---|
| Alabama | 70,676 | 1,713,225 | $95.3B | 48,695 | 28.1% | 23.6% | 51.7% | 28.1% |
| Alaska | 16,222 | 255,715 | $18.1B | 12,693 | 24.2% | 23.6% * | 47.8% | 31.3% |
| Arizona | 119,314 | 2,721,965 | $164.6B | 81,019 | 27.9% | 21.8% | 49.7% | 29.7% |
| Arkansas | 49,201 | 1,131,244 | $61.0B | 37,492 | 26.0% | 23.5% | 49.5% | 32.8% |
| California | 791,791 | 15,602,463 | $1.32T | 561,424 | 27.2% | 23.6% | 50.8% | 26.4% |
| Colorado | 140,658 | 2,395,734 | $163.7B | 107,206 | 27.7% | 19.7% | 47.4% | 25.7% |
| Connecticut | 65,346 | 1,442,000 | $108.3B | 47,916 | 30.8% | 27.8% | 58.6% | 23.6% |
| Delaware | 22,350 | 436,188 | $30.9B | 13,686 | 31.1% | 22.7% | 53.8% | 25.3% |
| District of Columbia | 14,583 | 471,258 | $47.2B | 8,423 | 27.8% | 21.4% | 49.2% | 12.4% |
| Florida | 500,294 | 9,530,354 | $561.7B | 312,763 | 29.5% | 22.7% | 52.2% | 25.6% |
| Georgia | 188,525 | 4,174,986 | $258.2B | 117,283 | 30.7% | 22.5% | 53.2% | 22.8% |
| Hawaii | 23,211 | 481,315 | $29.6B | 16,878 | 27.0% | 31.4% | 58.4% | 24.8% |
| Idaho | 46,244 | 704,898 | $38.2B | 40,906 | 23.8% | 17.0% | 40.8% | 38.9% |
| Illinois | 238,091 | 5,455,871 | $384.0B | 169,587 | 29.9% | 23.6% | 53.5% | 23.6% |
| Indiana | 103,466 | 2,786,503 | $160.1B | 84,919 | 27.0% | 24.7% | 51.7% | 28.6% |
| Iowa | 57,666 | 1,357,257 | $75.2B | 48,552 | 27.6% | 22.8% | 50.4% | 28.5% |
| Kansas | 52,627 | 1,153,663 | $64.9B | 42,754 | 25.7% | 21.2% | 46.9% | 29.1% |
| Kentucky | 62,546 | 1,708,523 | $94.0B | 45,396 | 28.1% | 24.0% | 52.1% | 27.1% |
| Louisiana | 77,611 | 1,729,928 | $96.9B | 54,440 | 27.4% | 25.9% | 53.3% | 27.6% |
| Maine | 32,944 | 545,310 | $30.8B | 24,254 | 30.5% | 26.1% | 56.6% | 28.1% |
| Maryland | 104,496 | 2,328,657 | $154.0B | 74,570 | 32.3% | 23.3% | 55.6% | 22.8% |
| Massachusetts | 137,011 | 3,293,470 | $281.1B | 83,927 | 31.3% | 26.1% | 57.4% | 19.9% |
| Michigan | 163,461 | 3,846,072 | $230.4B | 119,837 | 30.1% | 23.1% | 53.2% | 22.3% |
| Minnesota | 110,485 | 2,691,369 | $180.0B | 90,991 | 27.3% | 20.0% | 47.3% | 27.1% |
| Mississippi | 41,925 | 954,666 | $43.8B | 27,137 | 27.2% | 28.4% | 55.6% | 26.0% |
| Missouri | 102,850 | 2,477,742 | $150.4B | 75,176 | 28.1% | 25.1% | 53.2% | 29.5% |
| Montana | 34,269 | 389,108 | $20.4B | 28,992 | 27.3% | 22.2% | 49.5% | 33.7% |
| Nebraska | 41,718 | 885,225 | $50.4B | 36,266 | 26.3% | 23.2% | 49.5% | 32.9% |
| Nevada | 59,486 | 1,305,940 | $73.0B | 39,452 | 26.6% | 21.3% | 47.9% | 27.4% |
| New Hampshire | 29,391 | 604,125 | $39.1B | 22,232 | 32.3% | 23.0% | 55.3% | 26.4% |
| New Jersey | 185,622 | 3,754,949 | $270.0B | 117,342 | 30.6% | 25.6% | 56.2% | 21.8% |
| New Mexico | 32,406 | 603,085 | $31.5B | 23,229 | 28.4% | 26.1% | 54.5% | 33.3% |
| New York | 427,227 | 8,145,233 | $685.3B | 238,027 | 29.6% | 24.7% | 54.3% | 19.4% |
| North Carolina | 181,475 | 3,925,135 | $233.6B | 134,156 | 29.9% | 22.5% | 52.4% | 28.0% |
| North Dakota | 18,519 | 329,251 | $20.4B | 13,674 | 23.4% | 20.0% * | 43.4% | 25.1% |
| Ohio | 170,013 | 4,842,099 | $282.3B | 129,108 | 29.2% | 26.3% | 55.5% | 23.5% |
| Oklahoma | 69,555 | 1,363,362 | $72.7B | 51,591 | 27.5% | 25.4% | 52.9% | 28.4% |
| Oregon | 91,384 | 1,563,389 | $99.4B | 72,529 | 27.0% | 21.3% | 48.3% | 29.7% |
| Pennsylvania | 212,827 | 5,475,377 | $342.1B | 156,007 | 29.4% | 24.8% | 54.2% | 23.2% |
| Rhode Island | 23,020 | 422,548 | $26.2B | 13,942 | 34.0% | 28.2% | 62.2% | 22.6% |
| South Carolina | 86,169 | 1,933,490 | $101.6B | 58,771 | 27.5% | 21.8% | 49.3% | 22.7% |
| South Dakota | 22,507 | 395,787 | $20.6B | 18,734 | 26.1% | 20.3% * | 46.4% | 37.1% |
| Tennessee | 96,320 | 2,730,908 | $158.2B | 67,971 | 26.8% | 24.2% | 51.0% | 29.6% |
| Texas | 470,732 | 11,596,628 | $753.4B | 303,054 | 26.3% | 22.5% | 48.8% | 29.1% |
| Utah | 76,759 | 1,519,581 | $90.0B | 59,464 | 22.6% | 14.7% | 37.3% | 33.5% |
| Vermont | 16,582 | 238,862 | $13.2B | 11,632 | 29.0% | 23.9% * | 52.9% | 31.3% |
| Virginia | 147,928 | 3,390,010 | $232.4B | 108,503 | 29.3% | 23.0% | 52.3% | 24.6% |
| Washington | 153,111 | 2,840,272 | $234.6B | 120,891 | 27.0% | 20.2% | 47.2% | 31.7% |
| West Virginia | 22,945 | 521,582 | $26.4B | 17,283 | 28.7% | 27.1% | 55.8% | 29.8% |
| Wisconsin | 101,315 | 2,482,122 | $151.2B | 88,667 | 28.2% | 22.3% | 50.5% | 29.4% |
| Wyoming | 19,113 | 201,105 | $11.1B | 14,774 | 23.4% | 20.4% | 43.8% | 34.3% |
| United States | 5,934,950 | 132,849,544 | $8.88T | 4,208,231 | 28.2% | 23.1% | 51.3% | 26.1% |
What this means for business-owning families
A succession plan isn’t just a business document. It’s an estate plan for the business. Without one, a death or sudden disability can leave the family with a company nobody can legally run, bank accounts nobody can sign on, and employees who don’t get paid.
The basics:
- A buy-sell agreement. If you have partners, this contract says what happens to an owner’s share at death, disability, divorce, or retirement: who can buy it, at what price, and how it gets paid for. Life insurance often funds it. Without one, your spouse could end up co-owning a business with your partners, or your partners could end up working with your heirs.
- Who can step in, legally. A durable power of attorney that covers business interests, plus updated company documents (LLC operating agreement or corporate bylaws), let a trusted person keep the doors open. See our list of essential estate documents.
- Keeping the business out of probate. Probate can freeze an owner’s shares for months. Holding the ownership interest in a revocable living trust, where the business entity allows it, lets a successor trustee act right away. Read trust vs. will, how living trusts work, and avoiding probate.
- Taxes and fairness among kids. If one child runs the business and others don’t, the plan has to balance that. Larger estates should also check estate tax exposure and state estate taxes.
- Talk about it now. Our family conversation guide and when parents don’t plan can help start the talk.
Related research: farmers 65 and older by state shows 1,293,993 farm producers (38.4%) were 65 or older in USDA’s 2022 Census of Agriculture.
Methodology
- Owner age and business data. U.S. Census Bureau, Annual Business Survey (ABS), data year 2023, the latest available in the Census API as of Oct. 1, 2026. All tables are for all sectors combined (NAICS 00) and all owners and firms, regardless of sex, ethnicity, race, or veteran status.
- Owner age, primary income, and prior business status: dataset abscbo (api.census.gov/data/2023/abscbo). Variables: OWNPDEMP (owners of employer firms) and OWNPDEMP_PCT for question O09 (owner age), O05 (primary income), and O15 (prior business status). Percentages are of owners who answered.
- Firms, employees, payroll, receipts: dataset abscs (FIRMPDEMP, EMP, PAYANN, RCPPDEMP).
- Family ownership: dataset abscb, question B02 (FAMOWN).
- Relative standard errors (OWNPDEMP_S) are kept in the CSV.
- The Census API didn’t return owner-age detail by industry for this year (HTTP 204), so we don’t show sector breakdowns.
- Succession surveys. We quote these exactly. They’re national samples, not state data.
- U.S. Bank, “Small Business Perspective” (press release June 11, 2025). Survey of 1,000 U.S. small-business owners with $25 million or less in revenue and 2–99 employees, fielded March 14–April 4, 2025, margin of error ±3.1%. (https://www.businesswire.com/news/home/20250611019480/en/)
- JPMorgan Chase, Local Snapshot Succession Survey (2026). About 1,000 small-business owners nationwide, March 2026. (https://media.chase.com/news/local-snapshot-succession-survey)
- Files. The final CSV is in the Downloads section above.
FAQ
How many small businesses will close when their owners retire?
No public data set counts that. What we know: about half of owners are 55+, and surveys find many lack a formal succession plan. Some of those businesses will be sold or passed on, and some will close.
What’s the difference between a succession plan and an estate plan?
A succession plan covers who runs and owns the business next. An estate plan covers everything you own when you die or become incapacitated. For a business owner, the two have to match. A will that leaves “my business” to three kids without a buy-sell agreement or operating agreement can create a mess.
Do I need a trust for my business?
Not always. But a revocable living trust can let a successor manage your ownership interest without waiting for probate. Check your operating agreement or bylaws for transfer restrictions first.
My state isn’t in the top of the list. Does this still matter?
Yes. Even in Utah, the youngest state, more than a third of owners (37.3%) are 55 or older.
Cite this data
Family Estate Guide, “Half of Small Business Owners Are 55 or Older: Who Has a Succession Plan?” (2026), https://familyestateguide.com/estate-planning-data/small-business-succession-by-state/. Data: U.S. Census Bureau Annual Business Survey (data year 2023); U.S. Bank Small Business Perspective (2025); Chase succession survey (2026).
Published October 1, 2026. Data vintage: Census Bureau Annual Business Survey, data year 2023 (latest in the Census API, Oct 2026); U.S. Bank survey (2025); Chase survey (2026). Editorial standards.