Eighty Percent of Small Business Owners Don’t Plan to Retire

While many green industry workers are putting away the mowers, sprayers and excavators to “retire” for the winter, a new Wells Fargo/Gallup Small Business Index finds that eight in 10 small business owners don’t plan on actually retiring at all come age 65. In fact, four in 10 respondents say the only thing that would force them to retire is their health.

"We started this business with our hearts and our minds and are extremely passionate about its success,” says Nancy Fe Tom, owner of The Architectural Co., Tucson, Ariz. “It would be very difficult to just walk away from what we have built and 'retire' completely. I will always have an interest in the success of this company and will be committed to continuing that success for as long as I can."

The Index shows that 42 percent of small business owners surveyed indicate they may cut back on work, but will never completely abandon their businesses. The Index also shows that almost two-thirds of small business owners expect their business to continue operating after they have retired. Only 19 percent plan on traditional retirement.

Of the business owners who expect their businesses to carry on beyond their working years, 41 percent expect someone in their family to keep the business going.  Additionally, 34 percent expect to sell their business to someone outside the company, and 21 percent say they will sell it to one or more non-family member employees in the business.

"Small business owners have a different definition of the word 'retirement'," said Rebecca Macieira-Kaufmann, executive vice president and small business segment manager for Wells Fargo. "Since many are living their dreams and love what they do, they do not want to stop working. This survey shows that more than ever they're dedicated to the success of their business. It's their passion and they want to stay engaged in their business as long as possible.”

The Index tracks six key measures for both current conditions and future expectations as reported by small business owners: Current financial situation, revenue, cash flow, capital spending, number of jobs and credit availability. The index has been active since the third quarter of 2003.