20 eye-opening statistics about business owners
- Michelle Philippon
How many of today’s business owners are planning on exiting? What succession plans are they looking into?
Get answers to both those questions and more in this list of 20 business owner stats based on research from Project Equity, the Exit Planning Institute, ideas42 and Gallup.
What are the demographics and market opportunities?
- There are 2.9 million businesses in the U.S. owned by individuals aged 55 or older—supporting 32.1 million employees, $1.3 trillion in payroll and $6.5 trillion in revenue. (Project Equity)
- According to one survey, an estimated 73% of privately held companies in the U.S. plan to transition ownership within the next decade—representing a $14 trillion opportunity. (Exit Planning Institute, 2023)
- Nearly half (49%) of surveyed business owners plan to exit their company within the next five years. (Exit Planning Institute, 2023)
What’s important for owners who exit?
- Among business owners, over half prioritized preserving the legacy and values of their business over financial considerations, per one study. (ideas42, 2025)
- After exiting their businesses, 42% of owners plan to retire, 39% intend to invest in another business, and 31% want to pursue philanthropy or civic engagement, according to one study. (Exit Planning Institute, 2023)
- For 70% of business owners in the same study, income from their business is essential to maintain their lifestyle. (Exit Planning Institute, 2023)
Are business owners ready to exit?
- Although most surveyed business owners are aware of succession planning and understand how to start, many don’t see it as urgent—63% say it’s “too early” and 45% are “too busy” to begin. (ideas42, 2025)
- Half (50%) of business owners in one study say they have a detailed succession plan, but definitions of what constitutes a “plan” vary widely. (ideas42, 2025)
- One-third of surveyed business owners admit they either don’t have a long-term plan or are unsure about what will happen to their business after they leave according to another study. (Gallup, 2024)
- In 2023, 68% of owners in one study sought advice on business transitions, yet 78% still lacked a formal transition team. (Exit Planning Institute, 2023)
How are business owners preparing to exit?
- The 2023 State of Owner Readiness report shows a rise in formal exit planning education, with increased understanding of exit options and greater engagement in pre-transition activities. Whereas in 2013, only 35% of surveyed business owners had received formal exit planning education, 68% had in 2023. (Exit Planning Institute, 2023)
- 60% of business owners have had their business formally valued within the last two years per one study—up significantly from 18% in 2013. (Exit Planning Institute, 2023)
- Younger generations show greater adoption of exit planning according to the same study: 19% of baby boomers, 39% of Gen X, 21% of millennials and 20% of Gen Z owners have started exit planning. (Exit Planning Institute, 2023)
- 45% of surveyed respondents believe themselves best-in-class or better when it comes to their business’s readiness to transition to a potential buyer. (Exit Planning Institute, 2023)
- In evaluating which advisors they trusted most for exit planning, the #1 advisor was a financial advisor, followed by 2) attorney, 3) accountant, 4) spouse and 5) banker. (Exit Planning Institute, 2023)
Who’s next in line?
- When choosing an exit strategy, 70% of business owners prefer internal transfers, 17% opt for external sales, and 13% remain undecided. (Exit Planning Institute, 2023)
- 54% of business owners aim to pass their business to a family member according to one survey, despite the low survival rate of family businesses across generations. (ideas42, 2025)
What’s the financial impact of exit decisions?
- 54% of owners believe ensuring their business remains profitable is key to a successful exit. (Exit Planning Institute, 2023)
- Employers planning to sell or transfer their business report higher median profits ($100,000 or $85,000) than those planning to shut down ($20,000). (Gallup, 2024)
What’s next?
In reading these statistics, you should hopefully walk away with a better idea of what exiting business owners are thinking about and planning.
What’s key is for business owners to start planning as soon as possible. In fact, business owners can never start planning too early for their exit.
- Are you a fellow business owner? Explore different succession planning options.
- Are you a trusted advisor for exit planning? Become an employee ownership expert by checking out our on-demand learning products for business advisors.
- Are you a partner looking for more exit planning research? Peruse our publications.
