The Challenge of Business Succession in Manufacturing and the Opportunities for Diversifying Ownership

This joint report by The Century Foundation and UMA investigates the significance of transition of ownership as a driver of diversification, and effective capital and entrepreneurial policy strategies and responses to facilitate such transitions.

Baby Boomers that currently own their own businesses but are seeking to retire will need to find new owners, creating the conditions for a so called silver tsunami of ownership transition. But without intentional efforts and deliberate policy choices by states and the federal government, diversification in business ownership is unlikely to occur and this vital economic sector could be weaker.

The research and recommendations contained in this report are being released at the start of a new multi city initiative by UMA to leverage this economic change in manufacturing into a new generation of more diverse owners. This new initiative will focus on the purchase of existing businesses as another pathway into entrepreneurship. Facilitating this change requires deploying new forms of patient capital, identifying transition-ready firms, and supporting prospective entrepreneurs and employee owners.

The time is now for states and the federal government to make intentional policy choices to support just transitions of manufacturing business ownership, in order to build more equity in this vital economic sector.