More Than 2 Million Businesses Expected to Change Hands Nationally

*KALAMAZOO, Mich.* — Every single day in the United States, more than 10,000 baby boomers hit 65, the standard age for retirement, according to AARP. By the end of 2029, all baby boomers will be past retirement age, stepping away from not only careers, but small businesses that have come to form the bones of West Michigan's economy.

This wave of retirements is being called the "Silver Tsunami" by economists and business experts. The phenomenon represents one of the largest concentrations of business ownership in American history, with baby boomers born between 1946 and 1964 owning local bakeries, HVAC companies, manufacturing plants, roofing companies, distilleries, and countless other storefronts throughout the region.

"We see this not as a crisis, but as an opportunity," said Dwayne Power Jr., co-founder and COO of Kalamazoo Forward Ventures. "To really invest in under-invested-in entrepreneurs, to create equity, and to create shared wealth in our community."

More than two million businesses are expected to change hands throughout the country within the next decade, representing somewhere between $10-15 trillion dollars in assets according to Power.

The Economic Stakes for Kalamazoo County

Dr. Brad Hershbein, senior economist at the W.E. Upjohn Institute for Employment Research in Kalamazoo, said that while "crisis" is likely an overstatement on a national scale, the silver tsunami could lead to economic concerns locally if businesses around the Kalamazoo area close in rapid succession.

"If there is one small business, whether it be a small factory or a small research firm, employing 20, 50 people, and that closes, that's a loss of jobs," Hershbein explained. "On a larger scale, if you lose several businesses that employ a significant number of people, that has a ripple effect on the local economy."

The Upjohn Institute is one of the premier economic research organizations in the Midwest, and Hershbein's assessment reflects the institute's long-standing analysis of local economic development trends.

Kalamazoo Forward Ventures: Turning the Wave into Opportunity

Kalamazoo Forward Ventures (KFV) has positioned itself as a key player in this transition, offering programs designed to help retiring business owners and their communities navigate the complex process of succession planning.

"Retiring business owners in the Kalamazoo area can reach out to KFV at any time, with no commitment, to begin thinking about what comes next for their businesses," the organization stated.

The venture capital firm's approach focuses on three main pillars:

  • Preparation — Helping current business owners think through succession scenarios before they retire
  • Entrepreneurship training — The Tsunami Lab prepares aspiring entrepreneurs for the challenges of buying and running a business
  • Capital access — KFV is hoping to fund three to five participants to purchase a business, with the team helping the new owner continue to grow the business and take it to the next level

What's at Stake for the Region

Economists estimate that roughly ten thousand baby boomers retire from the workforce every single day throughout the United States. By the end of 2029, when all baby boomers will have reached retirement age, the impact on local economies could be profound.

The Upjohn Institute's research suggests that many retiring business owners face a difficult dilemma. After years of building their companies, they often have no clear plan for what happens to their businesses. Without proper succession planning, many end up closing shop rather than passing their companies to the next generation.

"These people built up these businesses," Power noted. "Their retirement to sell this business, and so you have to find a way to be competitive."

The Path Forward

KFV's approach offers a different model for West Michigan. Rather than waiting for businesses to close, the organization is actively preparing the next generation of entrepreneurs to step up and fill the void.

The Tsunami Lab component of KFV's programming focuses specifically on training aspiring entrepreneurs. The program aims to help participants develop the skills and capital needed to purchase existing businesses, creating a pipeline of new business ownership in the region.

"Not only will the Tsunami Lab prepare aspiring entrepreneurs," Power explained, "but it is also hoping to fund three to five participants to purchase a business."

From there, the team will help the new owner continue to grow the business and take it to the next level, bringing more opportunity to the area.

A Critical Time for Community Investment

The stakes are particularly high for communities like Kalamazoo, where small businesses represent the backbone of local economic development. When these businesses close without proper succession planning, the impact extends beyond job losses to include the erosion of community character and local economic stability.

KFV's work represents a proactive approach to this challenge, positioning retiring business owners and their communities to turn a potentially disruptive wave into an opportunity for growth and renewal.

As the Silver Tsunami approaches its peak in the late 2020s, organizations like Kalamazoo Forward Ventures are betting that with proper planning and investment, the next generation can step up to fill the void and build an even stronger regional economy.