Call it the “silver tsunami.”

Waves of aging small business owners are planning to retire over the next 10 years, according to new data from the 2026 Zelle Small Business Pulse Report, released on April 27.

Almost half (49 percent) of small business owners over the age of 50 say they will exit within the next decade.

Similar trends are unfolding across the broader workforce, with the share of Americans aged 55 and older working at the lowest level since April 2005.

Older entrepreneurs, meanwhile, could face a series of obstacles as they plan to take it easy in their golden years and hand the reins to the younger generation.

Sixty percent of small business owners do not have a formal succession plan, while 41 percent said they will permanently close their doors if they cannot find a buyer.

In addition, only 9 percent of soon-to-be retirees have identified a successor.

It is not as if there is a lack of entrepreneurial spirit traversing the U.S. marketplace.

Close to three-quarters and more than half of millennials want to own a business in the future, a Wells Fargo Money Study published last month found. Most also believe owning a business is part of the American dream.

Many Americans are not only thinking about starting a company but also following through on these goals.

While down from the post-pandemic peak, business applications remain firmly above pre-pandemic levels, according to the latest Census Bureau data. Looking ahead, the federal agency projects that almost 29,000 new businesses with payroll tax liabilities will form over the next four quarters.

Taking over an already established small business could be a key step, says Denise Leonhard, general manager of Zelle.

“There is a massive opportunity right now for the next generation of entrepreneurs to skip starting from scratch and instead buy and modernize existing businesses,” Leonhard said in a news release.

At the same time, many budding entrepreneurs will consider various factors before agreeing to purchase a firm.

“For younger entrepreneurs, expectations are fundamentally different,“ Leonhard said. ”Raised in an era of fast payments and creator-led businesses, speed, reliability, and digital fluency are baseline requirements.”

Ultimately, Zelle’s report highlights that more than two-thirds (67 percent) of prospective small business owners note they would walk away from an agreement if the company maintains outdated payment systems.

Nearly 90 percent of young entrepreneurs say they are more attracted to businesses that operate digitally, and receiving payments quickly is crucial to reducing first-year risk.

Small Business Challenges

While small businesses are the lifeblood of the U.S. economy—they contribute about 43 percent of the gross domestic product and employ half of the American workforce—companies with fewer than 500 workers can often endure a volatile climate and feel the squeeze, according to the U.S. Chamber of Commerce.

Data indicate many of these entities shutter in their infancy, with more than one-fifth (22 percent) of businesses failing in their first year, according to Lending Tree.

The National Federation of Independent Business’s (NFIB) March Small Business Optimism Index sank to its lowest level since April 2025 and is below the 52-year average of 98.

Since peaking in December 2024 following the presidential election, the index has been in a downward trend as these smaller outfits grapple with various headwinds, including tariffs and higher energy prices.

“The dramatic spike in oil prices has spooked consumers and owners alike,” Bill Dunkelberg, chief economist at the NFIB, said in a news release. “Small business owners are having to absorb those higher input costs and pass them along to their customers.”

Efforts are underway to expand entrepreneurship and support the current and future crop of small business owners.

JPMorgan Chase said last month it plans to boost small-business lending and hire more credit officers to expand growth in local markets.

The largest U.S. bank, as part of its American Dream initiative, projects to lend $80 billion and reach more than 100,000 small business owners.

“The American Dream is alive, but it’s slipping out of reach for too many people - and for future generations,” Jamie Dimon, chairman and CEO of JPMorgan Chase, said in a statement.