Can the Rise of Younger Entrepreneurs Stem the Tide of Business Closures?
Writer / Ralana Abraham
On a recent Monday morning at Dunkin’ Donuts on Tillotson Avenue, I sat across from Bruce Wolowski, owner of Crystal Glass on Kilgore Avenue. The lonely little “Business for Sale” sign outside his family business attests to an all-too-common occurrence these days. After 50 years and two generations of Wolowskis providing exemplary service and employment to the community, Bruce has reached the point of retirement and faces a decision — sell to a buyer with a vision to carry the business forward or close his doors.
I asked him what advice he would give other business owners approaching retirement. “They should start their research early and find out how to prepare their business for sale. I wish I had done that earlier,” he says.
Most business owners like Bruce find that running their business takes time and focus away from planning for a future exit. Before they know it, it’s decision time.
In recent years, my industry — the business brokerage and M&A industry — has been gearing up for what’s been called the Silver Tsunami. Roughly 12 million small to mid-sized businesses are owned by baby boomers in the U.S., according to the U.S. Small Business Administration Office of Advocacy. Of those, approximately 41% report that their children are ready to take over. The remaining 59% will either sell and transition to new ownership or close as the baby boomer owners retire or are forced to quit working for health reasons — as is too often the case.
Business closures have been accelerated by a lack of retirement and succession planning, a shortage of local buyers, and economic shifts such as COVID-19, inflation and labor shortages. Closures are especially severe in rural areas, where younger generations are leaving and small businesses can’t compete with big-box retailers.
So what happens when a business can’t find a buyer, as Bruce hopes to do? What are their options? I’ve had many conversations recently with business owners and noticed a growing trend — a desire among older business owners to mentor younger entrepreneurs and pass on their knowledge and skills to a new generation.
That means there’s hope on the horizon. The M&A and business brokerage industry is seeing an increase in younger, entrepreneurially minded individuals choosing to acquire businesses rather than start from scratch. According to an article in BizBuySell, “this trend is fueled by the growing popularity of entrepreneurship through acquisition (ETA) programs at business schools across the country.” These programs teach students to raise capital from investors, search for a viable business to purchase, then buy and operate it.
There has also been a cultural shift — many young professionals now seek more control over their careers, gravitating toward trades, creative ventures and service industries. These trends continue to grow.
I recently spoke with Ted Baker, CEO of the Innovation Connector, a successful entrepreneur, business owner and business seller. He’s seen many businesses close because they “did not have a plan in place.” When preparing to sell his businesses, Baker developed strong internal processes and management systems so they could run without him — making them more attractive to buyers.
I asked Baker what opportunities he sees in the Silver Tsunami for younger entrepreneurs. He pointed out that for baby boomers and Gen Xers, corporate jobs once offered security and good benefits. But that’s no longer the case. More young people now look for independent opportunities in stable or creative industries, where they see more control and financial potential.
Advances in technology, artificial intelligence and social media have also empowered this generation to manage operations, marketing and customer acquisition more efficiently — allowing them to grow quickly. The Silver Tsunami offers them another path to ownership: stepping into an existing business with established operations, customers and revenue, then using tech to accelerate growth.
So why isn’t this creating an overwhelming wave of new business ownership?
The challenge is awareness — connecting retiring sellers with younger buyers, and helping both groups understand the process of planning, funding and transitioning.
Fortunately, there are more resources than ever before. Locally, organizations such as the Innovation Connector and the East Central Indiana Small Business Development Center (ISBDC) help entrepreneurs start and grow businesses. Websites like BizBuySell.com and BizQuest.com offer listings and guidance for both buyers and sellers. Social platforms like LinkedIn, Facebook, Instagram, YouTube and TikTok are also becoming hubs for business sale opportunities and advice.
To the younger entrepreneur, I’d say: find a mentor (the Innovation Connector is a great place to start), pick an industry, secure funding and go after your opportunity.
Too many Main Street businesses have closed in recent years — we all see the empty storefronts. But the next decade can look different if more resources and awareness reach both retiring owners and aspiring entrepreneurs. There’s tremendous opportunity for aging business owners to mentor younger ones, passing on their knowledge while a new generation brings innovation and technology.
I can’t wait to see what the next chapter of the American Dream looks like as this generational shift unfolds.
About the Author:
Ralana Abraham is a certified business broker and the owner and founder of MBB, LLC dba Muncie Business Brokers. A 20-year veteran of the small- to mid-sized business acquisitions industry, she has overseen the strategy for thousands of central Indiana businesses brought to market. A Ball State graduate who grew up in a family business, Abraham learned early the value of hard work and the entrepreneurial spirit. She is a member of the International Business Brokers Association (IBBA), Midwest Business Brokers Institute (MBBI) and Community Business Connections (CBC) in Muncie. She also owns Orchard & Opal Occasions, a central Indiana wedding and event coordination business.
