Originally published: SMBtech, 15 April 2026
Australia’s small business sector is heading towards what researchers are calling a “succession cliff,” with a significant gap between the number of owners preparing to retire and those who have a plan for what happens next.
Research commissioned by VistaPrint found that 31 per cent of Australian small business owners plan to retire within the next five years, yet only 16 per cent have a documented succession plan in place.
Close to half – 45 per cent – of all Australian small business owners considering an exit have no succession or sale plan at all. One in four have never even considered what will happen to their business when they leave.
The findings come at a time when small business insolvencies in Australia are already at record levels, according to data from the Australian Securities and Investments Commission.
A Cliff Edge For Small Business
Marcus Marchant, CEO of VistaPrint ANZS, warned the numbers point to a structural problem.
“With one in three small businesses getting close to retirement without a clear plan for what happens next, we are heading towards a succession cliff,” Marchant stated.
“In many cases, the business is still heavily tied to the owner, through their relationships, reputation and day-to-day involvement, which can make it much harder to sell, hand over or keep the business going when they step away.”
The VistaPrint research, conducted by Pureprofile across a sample of 510 Australian small and medium-sized business owners, suggests tens of thousands of businesses risk closing not because they are failing but because no one is ready to take over.
