TORONTO, Nov. 26, 2012 /CNW/ - The 2008-2009 recession prompted many
baby boomer entrepreneurs to delay their retirement plans and stay in
business longer than they had anticipated. That's according to a new
report, Passing on the Business to the Next Generation based on survey data from the Canadian Federation of Independent
"The recession clearly had an impact on succession planning," said
CFIB's vice president of research, Doug Bruce. "Instead of passing the
business on to the next generation, some small businesses decided to
hold onto their business until its value returned to pre-recession
Almost a quarter (23 per cent) of business owners said they have delayed
the timing of their exit date between one and four years. Only five per
cent said the downturn prompted them to accelerate their exit date.
While estimates vary, Canadians will see a massive transfer of small
business assets in the next decade - possibly more than a trillion
The report found that almost half of small and mid-size enterprises
(SMEs) currently have a succession plan in place. Out of these small
business owners, one half will exit their businesses in the next five
"Small business is the backbone of the Canadian economy, and succession
planning is critical to the long-term future of small business," said
CFIB President and CEO Dan Kelly. "Governments have the ability to hurt
or help entrepreneurs successfully pass on their businesses to the next
generation. We are counting on the Harper Government to live up to its
2008 election commitment to index the lifetime capital gains exemption
(LCGE) to inflation. Unlike those working for government, very few
small business owners have a pension and instead rely on the value of
their business to help fund their retirement."
To read Passing on the Business to the Next Generation, visit www.cfib.ca.
As Canada's largest association of small- and medium-sized businesses,
CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes
direction from more than 109,000 members in every sector nationwide,
giving independent business a strong and influential voice at all
levels of government and helping to grow the economy.
SOURCE: CANADIAN FEDERATION OF INDEPENDENT BUSINESS
For further information:
To arrange an interview with Dan Kelly or Doug Bruce, please call Gisele Lumsden at 416-222-8022 or by email at firstname.lastname@example.org.