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Americans love small businesses. We dedicate to applauding them, and spend shopping locally. Yet is an enormous challenge facing small business owners as they age: retiring with dignity and foresight. The current economic climate is making this even more difficult.

As a , I've long viewed small business owners' retirement challenges as a looming crisis. The issue is now front and center for millions of entrepreneurs approaching retirement. Small enterprises make up , and for many of their owners, the business is their retirement plan.

But while owners often hope to finance their golden years by selling their companies, are ready for sale even in good times, according to the Exit Planning Institute. And right now, conditions are far from ideal. An of inflation, supply chain instability and high borrowing costs means that interest from potential buyers is cooling.

For many business owners, retirement isn't a distant concern. In the U.S., baby boomers—who are currently 61 to 79 years old—own . Altogether, they generate about US$5 billion in revenue and employ almost 25 million people. These entrepreneurs have spent decades building businesses that often are deeply rooted in their communities. They don't have time to ride out economic chaos, and their optimism is at a .

New policies, new challenges

You can't blame them for being gloomy. Recent policy shifts have only made life harder for business owners nearing retirement. Trade instability, and have eroded already thin margins. Some businesses—generally larger ones with more negotiating power—are rather than passing them on to shoppers. Others have , to customers' dismay. has further squeezed profits.

At the same time, with a few , buyers and capital have grown scarce. Acquirers and liquidity have . The secondary market—a barometer of broader investor appetite—now sees more sellers than buyers. These are textbook symptoms of a "," a market shift that drags out sale timelines and depresses valuations—all while . These entrepreneurs typically have —if any.

Adding to these woes, many small businesses are part of what providing services to nearby universities, hospitals and local governments. When those anchor institutions face budget cuts——small business vendors are often the first to feel the impact.

Research shows that many aging owners actually double down in weak economic times, sinking increasing amounts of time and money in a psychological pattern known as "." The result is a troubling phenomenon scholars refer to as "." Aging entrepreneurs can remain attached to their businesses not because they want to, but because they see no viable exit.

This growing crisis isn't about bad personal planning—it's a systemic failure.

Rewriting the playbook on small business policy

A key mistake that policymakers make is to into one group. That causes them to overlook important differences. After all, a 68-year-old carpenter trying to retire doesn't have much in common with a 28-year-old tech founder pitching a startup. Policymakers may cheer for high-growth "," but they often overlook the "" that keep local economies running.

Even among older business owners, circumstances vary based on local conditions. Two retiring carpenters in different towns may face vastly different prospects based on the strength of their local economies. No business, and no business owner, exists in a vacuum.

Relatedly, when small businesses fail to transition, it can have consequences for the local economy. Without a buyer, many enterprises will simply shut down. And while closures can be , when a business closes suddenly, it's not just the owner who loses. Employees are left scrambling for work. Suppliers lose contracts. Communities lose essential services.

Four ways to help aging entrepreneurs

That's why I think policymakers should reimagine how they support small businesses, especially owners nearing the end of their careers.

First, small business policy should be tailored to age. A retirement-ready business shouldn't be judged solely by its growth potential. Rather, policies should recognize stability and community value as markers of success. The U.S. Small Business Administration and regional agencies can provide resources specifically for retirement planning that starts early in a business's life, to include how to increase the value of the business and a plan to attract acquirers in later stages.

Second, exit infrastructure should be built into local entrepreneurial ecosystems. are built to support business entry—think and —b³Ü³Ù . In other words, just like there are accelerators for launching businesses, there should be programs to support winding them down. These could include confidential peer forums, retirement-readiness clinics, succession matchmaking platforms and flexible financing options for acquisition.

Third, . Fluctuations in , and tariffs make in the eyes of potential buyers. Stability encourages confidence on both sides of a transaction.

And finally, policymakers should include ripple-effect analysis in budget decisions. When universities, hospitals or governments cut spending, small business vendors often absorb much of the shock. Policymakers should account for these downstream impacts when shaping local and federal budgets.

If we want to truly support small businesses and their owners, it's important to honor the lifetime arc of entrepreneurship—not just the launch and growth, but the retirement, too.

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