Older man tele working with laptop computer at home office in dark room, thinking, looking busy.
No country for old business owners: Economic shifts create a growing challenge for America’s aging entrepreneurs
Nancy Forster-Holt, University of Rhode Island Americans love small businesses. We dedicate a week each year to applauding them, and spend Small Business Saturday shopping locally. Yet hiding in plain sight is an enormous challenge facing small business owners as they age: retiring with dignity and foresight. The current economic climate is making this even more difficult. As a professor who studies aging and business, I’ve long viewed small business owners’ retirement challenges as a looming crisis. The issue is now front and center for millions of entrepreneurs approaching retirement. Small enterprises make up more than half of all privately held U.S. companies, and for many of their owners, the business is their retirement plan. But while owners often hope to finance their golden years by selling their companies, only 20% of small businesses are ready for sale even in good times, according to the Exit Planning Institute. And right now, conditions are far from ideal. An economic stew of inflation, supply chain instability and high borrowing costs means that interest from potential buyers is cooling. For many business owners, retirement isn’t a distant concern. In the U.S., baby boomers – who are currently 61 to 79 years old – own about 2.3 million businesses. Altogether, they generate about US$5 billion in revenue and employ almost 25 million people. These entrepreneurs have spent decades building businesses that often are deeply rooted in their communities. They don’t have time to ride out economic chaos, and their optimism is at a 50-year low.
New policies, new challenges
You can’t blame them for being gloomy. Recent policy shifts have only made life harder for business owners nearing retirement. Trade instability, whipsawing tariff announcements and disrupted supply chains have eroded already thin margins. Some businesses – generally larger ones with more negotiating power – are absorbing extra costs rather than passing them on to shoppers. Others have no choice but to raise prices, to customers’ dismay. Inflation has further squeezed profits. At the same time, with a few notableexceptions, buyers and capital have grown scarce. Acquirers and liquidity have dried up across many sectors. The secondary market – a barometer of broader investor appetite – now sees more sellers than buyers. These are textbook symptoms of a “flight to safety,” a market shift that drags out sale timelines and depresses valuations – all while Main Street business owners age out. These entrepreneurs typically have one shot at retirement – if any. Adding to these woes, many small businesses are part of what economists call regional “clusters,” providing services to nearby universities, hospitals and local governments. When those anchor institutions face budget cuts – as is happening now – small business vendors are often the first to feel the impact. Research shows that many aging owners actually double down in weak economic times, sinking increasing amounts of time and money in a psychological pattern known as “escalating commitment.” The result is a troubling phenomenon scholars refer to as “benign entrapment.” Aging entrepreneurs can remain attached to their businesses not because they want to, but because they see no viable exit. This growing crisis isn’t about bad personal planning — it’s a systemic failure.
Rewriting the playbook on small business policy
A key mistake that policymakers make is to lump all small business owners together into one group. That causes them to overlook important differences. After all, a 68-year-old carpenter trying to retire doesn’t have much in common with a 28-year-old tech founder pitching a startup. Policymakers may cheer for high-growth “unicorns,” but they often overlook the “cows and horses” that keep local economies running. Even among older business owners, circumstances vary based on local conditions. Two retiring carpenters in different towns may face vastly different prospects based on the strength of their local economies. No business, and no business owner, exists in a vacuum.A small business owner in Rochester, Vt., discusses the challenges of retirement in a news segment from WCAX-TV. Relatedly, when small businesses fail to transition, it can have consequences for the local economy. Without a buyer, many enterprises will simply shut down. And while closures can be long-planned and thoughtful, when a business closes suddenly, it’s not just the owner who loses. Employees are left scrambling for work. Suppliers lose contracts. Communities lose essential services.
Four ways to help aging entrepreneurs
That’s why I think policymakers should reimagine how they support small businesses, especially owners nearing the end of their careers. First, small business policy should be tailored to age. A retirement-ready business shouldn’t be judged solely by its growth potential. Rather, policies should recognize stability and community value as markers of success. The U.S. Small Business Administration and regional agencies can provide resources specifically for retirement planning that starts early in a business’s life, to include how to increase the value of the business and a plan to attract acquirers in later stages. Second, exit infrastructure should be built into local entrepreneurial ecosystems. Entrepreneurial ecosystems are built to support business entry – think incubators and accelerators – but not for exit. In other words, just like there are accelerators for launching businesses, there should be programs to support winding them down. These could include confidential peer forums, retirement-readiness clinics, succession matchmaking platforms and flexible financing options for acquisition. Third, chaos isn’t good for anybody. Fluctuations in capital gains taxes, estate tax thresholds and tariffs make planning difficult and reduce business value in the eyes of potential buyers. Stability encourages confidence on both sides of a transaction. And finally, policymakers should include ripple-effect analysis in budget decisions. When universities, hospitals or governments cut spending, small business vendors often absorb much of the shock. Policymakers should account for these downstream impacts when shaping local and federal budgets. If we want to truly support small businesses and their owners, it’s important to honor the lifetime arc of entrepreneurship – not just the launch and growth, but the retirement, too. Nancy Forster-Holt, Clinical Associate Professor of Innovation and Entrepreneurship, University of Rhode Island This article is republished from The Conversation under a Creative Commons license. Read the original article.
Consider these ideas to blend function, comfort and style, and create a home office that inspires creativity and makes you want to sit down and get things done.
(Family Features) Hybrid schedules and remote work have become the norm for many people, which means a functional and inspiring workspace is more necessity than luxury. With the right setup – be it a dedicated room or a cozy corner – your space can boost productivity, spark creativity and make your workday more enjoyable. Consider these ideas to blend function, comfort and style, and create a home office that inspires creativity and makes you want to sit down and get things done. Focus on Comfort The desk and chair are the foundation of any home office. Be sure to build a setup that matches your work style by picking the right height desk (with the proper amount of storage and workspace to complete your tasks) and an adjustable chair with good lumbar support. If you’re at your computer most of the time during the day, an ergonomic keyboard and monitor stand can also make a comfortable difference. Create a Clutter-Free Work Zone Incorporating smart storage solutions like shelves, filing cabinets or baskets can help keep your workspace tidy and free of distracting clutter. Desk trays can keep small office supplies organized and within easy reach while maintaining a clean aesthetic. Add Personality with Decor Much like the rest of your home, your workspace should reflect your personality and style. Add artwork, decorative accents, plants or a photo wall to bring inspiration and freshness to your office and choose a color palette that promotes positivity and focus, such as soft blues, greens or neutrals. Layer Functional Lighting For optimal productivity, combine natural light with task and ambient lighting. If possible, position your desk near a window to capture natural light then supplement your space with a desk lamp for focused illumination and floor lamps, under-shelf lighting or wall sconces to add warmth and depth. Don’t Forget Acoustics Distracting noises can negatively impact focus. To absorb sound, use soft furnishings like rugs, upholstered chairs or curtains and consider a white noise machine if you need a more soothing work environment. Find more ideas to update every room in your house at eLivingtoday.com. Photo courtesy of Shutterstock SOURCE:eLivingtoday.com
When TV Talks About Gentrification and Shopping Local — and Where It Gets It Right (and Wrong)
A closer look at how the TV show The Neighborhood tackles gentrification and shopping local—and where the reality of online sales and small business survival is more complex.
In our continuing look at how entertainment—television, movies, and streaming shows—grapples with real-world issues, this time we turn our attention to gentrification and the often-repeated call to “shop local.” Once again, we examine how popular culture frames these conversations, this time through the CBS sitcom The Neighborhood and the episode “Welcome Back to What Used to Be the Neighborhood.”
A Familiar Story: When the Neighborhood Changes
In the episode, Calvin’s favorite longtime restaurant closes its doors and is replaced by a flashy new pet spa. To Calvin, the change symbolizes something much bigger than a single business closing—it represents the slow erosion of the neighborhood he knows and loves. In response, he launches a campaign urging friends and neighbors to buy local in order to protect small businesses from disappearing.
Emotionally, the episode hits home. Many communities across the country have watched beloved neighborhood institutions vanish, replaced by businesses that feel disconnected from the area’s history and culture. In that sense, The Neighborhood gets something very right: gentrification often shows up one storefront at a time.
Where Television Simplifies a Complicated Reality
But, as is often the case with television, the episode also simplifies a much more complex economic reality.
The show frames “shopping local” as a direct alternative to shopping online, subtly suggesting that online platforms are inherently harmful to small businesses. In real life, however, the line between “local” and “online” is no longer so clear.
Many local and small businesses now survive precisely because they sell online—through their own websites, through Amazon, or through other platforms that support independent sellers. For some, online sales are not a threat to local commerce; they are a lifeline.
Why Brick-and-Mortar Isn’t Always Sustainable
Rising costs are a major factor driving these changes. Commercial leases, insurance premiums, utilities, staffing costs, and local fees have all increased dramatically in many cities. For small business owners, keeping a physical storefront open can become financially impossible—even when customer support remains strong.
As a result, some businesses choose to close their brick-and-mortar locations while continuing to operate online. Others scale back to pop-ups, shared spaces, or hybrid models. These businesses may no longer have a traditional storefront, but they are still local—employing local workers, paying local taxes, and serving their communities in new ways.
The Real Issue Behind “Shop Local”
Where The Neighborhood succeeds is in capturing the emotional truth of gentrification: the sense of loss, displacement, and cultural change that comes with rising rents and shifting demographics.
Where it misses the mark is in suggesting that consumer choices alone—simply avoiding online shopping—can solve the problem.
The real challenges facing local and small businesses go far beyond individual buying habits. They include zoning policies, commercial rent practices, corporate consolidation, and economic systems that increasingly favor scale over community presence.
A Conversation Worth Having—Even If TV Can’t Finish It
The Neighborhood deserves credit for bringing these issues into mainstream conversation. It sparks discussion, even if it wraps a complicated topic in a sitcom-friendly moral lesson.
The reality is messier. Supporting local businesses today often means rethinking what “local” looks like in a digital economy—and recognizing that survival sometimes requires adaptation, not nostalgia.
At STM Daily News, our Local and Small Business coverage continues to explore these real-world dynamics beyond the TV screen, highlighting the challenges, innovations, and resilience of the businesses that keep communities alive—whether their doors are on Main Street or their storefronts live online.
📍 Read more Local and Small Business coverage at:STM Daily News
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Small Business Saturday is a celebration of the vibrant shopping opportunities within our own communities. This annual event, held on the Saturday after Thanksgiving, encourages us to support local businesses that contribute to our economy and employ a significant portion of the workforce. By shopping at small businesses, we not only find unique and high-quality gifts but also nurture our neighborhoods, tax base, schools, and infrastructure. These businesses take pride in their craftsmanship, offering handcrafted items that make for thoughtful presents. So, when shopping this holiday season, remember to explore local stores, ask for assistance, and discover hidden gems while supporting your community.
