A ‘Silver Tsunami’ Is Coming for Small Businesses — and Millions of Jobs, Say Experts
Over two million small businesses nationwide have owners nearing retirement age.
Key Takeaways
- Nearly half of U.S. small‑business owners are 55 years and older, and only about half have a succession plan.
- Small businesses employ more than 62 million Americans and generate roughly 43% of U.S. GDP, so widespread closures would hit jobs and local economies hard.
- Decisions about selling or stepping away are often deeply personal.
The U.S. is on the brink of a “silver tsunami” as Baby Boomer small-business owners retire. The shift threatens millions of jobs, but also creates an opening for the next generation of entrepreneurs.
Silver tsunami refers to the huge cohort of Baby Boomers who own companies and are nearing retirement, many without clear succession plans. According to a 2025 U.S. Bank report, nearly half of U.S. small-business owners are 55 years or older, yet only about 54% have any kind of succession plan in place. The U.S. Small Business Administration notes that small businesses employ more than 62 million Americans and generate 43% of U.S. GDP.
Nonprofit Project Equity estimates that aging Boomers preparing to retire own 2.3 million small businesses nationwide, representing one in six jobs in the U.S. economy. Many of these firms lack successors who want the business, and a third of owners over 50 report they struggle to find a buyer at all.
Ripple effects across communities
When there is no succession path, businesses are more likely to quietly close or attract attention from larger, often non‑local buyers. This can erase local jobs and shift wealth and decision‑making out of the community, per Project Equity.
If too many small businesses shut down instead of finding new leaders to take over, it could have ripple effects across communities nationwide, American Operator founder William Fry told Fox Business on Sunday. American Operator is a firm that buys small businesses from retiring owners and then partners with experienced operators who step in to run those companies.
“[Small businesses] are huge creators of wealth, and in my opinion, they’re the most pure version of the American Dream — you come to this country, and you can build a better life for yourself,” Fry said.
If even a modest share of Boomer‑owned firms close instead of changing hands, the impact could run into the tens of millions of jobs and hundreds of billions in lost local spending and tax revenue over the coming decade, according to a report released last month by McKinsey. But the same wave represents a rare buying window: experts estimate there are regularly 10 million to 11 million small businesses for sale in any three‑year span.
Key Takeaways
- Nearly half of U.S. small‑business owners are 55 years and older, and only about half have a succession plan.
- Small businesses employ more than 62 million Americans and generate roughly 43% of U.S. GDP, so widespread closures would hit jobs and local economies hard.
- Decisions about selling or stepping away are often deeply personal.
The U.S. is on the brink of a “silver tsunami” as Baby Boomer small-business owners retire. The shift threatens millions of jobs, but also creates an opening for the next generation of entrepreneurs.
Silver tsunami refers to the huge cohort of Baby Boomers who own companies and are nearing retirement, many without clear succession plans. According to a 2025 U.S. Bank report, nearly half of U.S. small-business owners are 55 years or older, yet only about 54% have any kind of succession plan in place. The U.S. Small Business Administration notes that small businesses employ more than 62 million Americans and generate 43% of U.S. GDP.
