Eight of Ten Small Business Owners Do Not Plan to Retire

Many workers may dream of retiring at 65 but a new Wells Fargo/Gallup Small Business Index finds that eight of ten small business owners surveyed are happy running their businesses and have no intention of retiring. In fact, almost four out of every ten 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. It would be very difficult to just walk away from what we have built and ‘retire’ completely,” said Nancy Fe Tom, owner of The Architectural Company in Tucson, Arizona. “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.”

Forty-two percent of small business owners surveyed indicate they may cut back on work, but will never completely abandon their business. 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 those 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 from outside the business, and 21 percent say they will sell it to one or more employees in the business, who are not family members.

“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, revenues, cash flow, capital spending, number of jobs, and credit availability.

Since the third quarter of 2003, the Index has surveyed small business owners on their perception of current conditions and future expectations relating to financial situation, revenues, cash flow, capital spending, number of jobs and credit availability.