Tavia Grant’s article, Aging population set to sideswipe Canada’s small businesses, outlines the issue of a large turnover (approx. $1.9 trillion) of business assets in the coming five years. Due to the aging population and the fact that a great number of business owners are over the age of 55, what will happen to these businesses once these people retire? Tavia brings up the valid point of poor planning.
This major concern of the economy and companies being greatly affected because of this mass switching of hands could be fixed with strategic planning. Currently, the concerns revolve around job loss, reduced productivity, and higher bankruptcy rates. With no planning for the event that owners do retire, these concerns will become a reality. However, with the next, roughly, five years to prepare and create an easier transition, companies could avoid the large panic and uncertainty they would face.
This issue, dealing with money and the state of the economy, also intertwines with social responsibility. According to the article, the companies engaging in this turnover collectively employ approx. two million people. With these employees’ jobs at stake, it is the responsibility of these firms to plan ahead to create an easier transition for itself, the economy, and its employees.
