JPMorgan Prepares for Small-Business Succession Crisis
JPMorgan Chase is tackling a looming succession crisis among small businesses in the US. An estimated 12 million companies, worth $10 trillion, are poised to change hands over the next decade or so.
The bank's CEO, Jamie Dimon, has highlighted the issue as part of his American Dream Initiative. The initiative aims to support 10 million small businesses, up from seven million currently served by JPMorgan.
A survey conducted by JPMorgan found that only 8% of small business owners are fully prepared to transfer ownership when they retire. Many are stuck in the early stages of planning and do not know where to start.
The bank plans to address this gap with a comprehensive advice campaign, providing coaching for almost 115,000 owners across over 80 cities. It also aims to increase small business lending to nearly $80 billion over 10 years, hiring an additional 1,000 business bankers along the way.