The
Silver Tsunami
Our local business landscape is going through a dramatic shift — and the window to act is closing.
Wisconsin is on the brink of a massive business ownership transition.
With almost half of all privately-held businesses with employees having owners over age 55 in Wisconsin, we will see a massive ownership changeover of locally-held businesses as the "Silver Tsunami" of retirements marches forward. The vast majority — over 85% — of business owners do not have a succession plan in place, and increasingly, many are finding it hard to find a buyer when they are ready to sell.
As a result, some companies will quietly close down, a small percent will be passed on to family members, others will sell to another local owner, and some will be sold to a larger company or out-of-area buyer — often at the cost of local jobs and community wealth.
"Since for most small business owners, the business is their retirement nest egg, they are faced with devastating choices — and without support, many will simply close up shop."
Local businesses are the lifeblood of our economy.
Small businesses make up over 99% of all firms and provide around half of private sector jobs in Wisconsin. Locally owned businesses circulate three times more money back into the local economy than absentee-owned firms or corporate chains — and they're rooted in local relationships, trust, and civic engagement.
When these businesses disappear or are absorbed by outside buyers, communities lose jobs, wealth, and the local fabric that holds them together.
Jobs disappear, wealth leaves the community, and the owner's life work ends without a legacy.
Layoffs often follow. Ownership and wealth concentrate further outside the community.
Jobs are preserved. Wealth stays local. Workers share in what they built. The business lives on.
Employee ownership keeps businesses local — for good.
Employee ownership offers business owners a way to increase employee engagement now, and a clear path to a sale that preserves their legacy. Rather than closing or selling to an outsider, owners can transfer the business to the people who know it best — their employees.
Broad-based employee ownership creates high-quality jobs, increases worker voice, and facilitates asset building for employee-owners — all while boosting business survival rates and keeping local economies strong.
Investing in employee ownership as part of our recovery agenda creates more resilient local economies with stronger small businesses and higher quality jobs.
See the scale of the crisis.
WICEO partnered with researchers to map the succession crisis across Wisconsin counties and industries. Explore the interactive data below.
We can all play a role in keeping businesses local.
There is low awareness of the impact of the Silver Tsunami on local business ownership. Here's how different stakeholders can help turn the tide.
Share this information with city government, economic development organizations, and community leaders who can help mobilize a response.
- Local governments can track aging businesses using business license data to measure the impact on their tax base.
- City and regional planners can convene lenders, business networks, and officials to assess and address the issue.
Most business owners don't know that selling to their employees is a great way to increase engagement and preserve their legacy. Help spread the word.
- Business service providers can add succession planning to their offerings and include employee ownership as an option.
- Cities can integrate succession planning into their economic development goals.
- Regional planners can incorporate local business ownership stabilization into their long-term strategies.
Interested in learning how businesses can transition to employee ownership?
WICEO provides free education, resources, and connections to help Wisconsin businesses make the transition.
Ready to explore
employee ownership?
Whether you're a business owner thinking about your next chapter, an advisor, or a community leader — WICEO is here to help. Learn about your options or talk to one of our trusted advisors for free.
