Over 60% of Canadian Small Business Owners Plan to Exit Within a Decade, Putting $2 Trillion at Risk
A CFIB survey finds that more than 60 per cent of small business owners in Canada intend to leave their businesses over the next decade, placing over $2 trillion in assets at risk. Only six per cent have a formal succession plan, while business exits have outpaced new entries since early 2024.
More than 60 per cent of small business owners in Canada plan to exit their businesses within the next decade, placing over $2 trillion in business assets at risk, according to a survey by the Canadian Federation of Independent Business (CFIB). 
Only six per cent of these small businesses currently have a formal succession plan in place. The CFIB warns that this lack of planning could deliver a huge blow to the economy, threaten jobs and local services, force delays in retirement for business owners, and lead to the closure of viable businesses.
Retirement is cited as the primary reason for exiting, followed by burnout, stress, and high operating costs. Thirteen per cent of owners expect to close their doors altogether rather than transfer or sell the business. The CFIB notes that business exits have outpaced new entries in Canada since early 2024, raising concerns about an entrepreneurial drought.
Nearly half of the owners surveyed said finding a buyer or suitable successor is the biggest obstacle to succession. Other key challenges include a lack of time to plan and difficulty in valuing the business.
Among those who do have succession plans, 54 per cent plan to sell to an unrelated buyer, while 28 per cent plan to sell to employees. Additionally, 21 per cent of owners plan to sell to a family member, and 19 per cent plan to transfer the business to a family member. Seven in 10 owners say keeping their business Canadian-owned is important. 
The findings were reported by the Financial Post, with CFIB representatives Corinne Pohlmann and Marvin Cruz associated with the survey data.