ABSTRACT:
Data has demonstrated the critical significance of succession planning in the context of small businesses. Small enterprises, constituting a substantial portion of the U.S. economy, face unique challenges ensuring seamless transitions from one leadership generation to the next. The study emphasizes the pivotal role of succession planning in mitigating disruptions, enhancing organizational resilience, and preserving long-term viability.
Examining the complexities inherent in small business succession, the study delves into the multifaceted reasons behind the lack of formal succession plans, including emotional attachments, fear of retirement, and reluctance to confront uncomfortable decisions. Despite the crucial role played by small businesses in the nation’s economic landscape, a substantial majority lacks preparedness for succession, leading to potential repercussions for local economies and employment.
Acknowledging the legislative efforts to address this gap, the study discusses the introduction of the Small Business Succession Planning Act. This bipartisan initiative aims to empower small business owners by providing resources, tax incentives, and educational support to facilitate the creation of formal succession plans. By dissecting the challenges faced by small businesses and presenting legislative interventions, this abstract underscores the urgency of prioritizing succession planning for the sustained growth and resilience of small enterprises.

Keywords: Succession planning, Small business, Minority business, Key roles