B.C. Business Owners' Retirement Plans Threaten Regional Economy

A recent survey from Angus Reid and National Bank suggests that Western Canada's business ecosystem may undergo significant changes due to decisions made by its owners. The survey found that nearly 47% of mid-market business owners in Western Canada expect to retire within the next decade, a figure that jumps to 53% in British Columbia.

In B.C., only about half of these owners have engaged with advisors to support the process of selling or transferring their businesses. The survey also revealed that succession planning is not just about financial returns; among B.C. owners planning a sale or transfer, ensuring business continuity ranked ahead of maximizing financial return.

The findings put B.C. in a unique category compared to the rest of Canada. While 35% of B.C. business owners said they're likely to wind down or close their businesses, this figure is significantly higher than the national average of 16%. Paul Gill, senior vice president and co-head of commercial banking and private banking at National Bank, noted that 'many business owners are approaching retirement at the same time and will need to make decisions about the future ownership of their businesses.'