Main street business owners: aging in plain sight

Abstract

PurposeAging is the most important social-demographic issue worldwide, supported by the initiatives of the World Health Organization (WHO) in its global strategy and action plan for aging and health (Rudnicka et al., 2020). The average age of business owners in most industrialized countries is on the rise. In the United States, fifty-one percent of small private businesses are owned by someone age fifty-plus (SBA Office of Advocacy, 2018).Design/methodology/approachThe authors shed light on small business owners, who age in place. The authors suggest that their importance as long-term actors in entrepreneurial ecosystems nor the issue of “Main Street churn” have not been meaningfully explored. They become embedded in their community and possibly stuck there in retirement. Understanding the risks they face offers an opportunity for academics and practitioners to provide insights for business owners, the next generation of the acquirer and advisors. The coronavirus disease 2019 (COVID-19) pandemic has elevated the status of many of these businesses from invisible (and perhaps taken for granted) to “essential” and amplified the co-dependence of business and the local economy.Findings The anticipated “silver tsunami” caused by the retirements of Main Street business owners is not a national and homogeneous wave. Rather, each wave will land on beaches locally. Small business owners age in place, and their importance as long-term actors in entrepreneurial ecosystems nor the issue of “Main Street churn” have not been meaningfully explored. They become embedded in their community and possibly stuck there in retirement.Originality/value The embeddedness of these owners – who likely have social connections, community identification and feelings of responsibility to the community directly impacts the places that they care deeply about – is often unquestioned. However, their retirements call for increased visibility within entrepreneurial ecosystems and translations of scholarly work from several kinds of literature into policy and practice.

Retiring entrepreneurs and succession planning: does entry mode determine exit strategy?

“…Studies have shown that the self-employed are more likely than employees to prefer late retirement (Radl, 2013;Visser et al, 2016;Zwier et al, 2021). As retirement decisions involve uncertain cost-benefit calculations, individuals are sensitive to signals from their social environment and consequently local embeddedness (Forster-Holt, 2022) or age norms (Radl, 2012) can affect them. Pending retirement can be a complex and highly emotional process in the context of entrepreneurship (Mallett and Wapshott, 2015;Morris et al, 2020).…”