Report: 6 million US small-business owners to retire by 2035, with some selling to workers

Approximately six million owners of US small and medium-sized companies will retire between now and 2035, according to a McKinsey report cited by BBC News. Up to 600 US firms per year are being sold to their workers, a 2025 study found. Investment funds available to finance employee-ownership deals rose 78 percent to $865 million in 2025 from $500 million in 2024.

Softstar Shoes in Oregon became owned by its 30-person workforce in January 2026. Tricia Salcido, age 56, sold the company to employees and remains as chief financial officer. The firm used an Employee Ownership Trust structure under which the trust pays Salcido the sale price in installments from future profits.

'," Salcido said. " Stockwell Elastomerics in Philadelphia was founded in 1919 by William Stockwell's great-grandfather. Stockwell sold the company to employees using an Employee Stock Ownership Plan.

He now works part-time and receives sale payments over 10 years. "I'm accepting payments over 10 years," Stockwell said. 9 million people with combined assets exceeding $2 trillion.

Paul Silvis, age 71, is in the process of selling SilkoTek Corporation in central Pennsylvania to its employees. "I'm getting ready to ride off into the sunset at some point," he said. The US Department of Labour has launched a new Employee Ownership Initiative to promote and advise on employee ownership.

Ethan Rouen, associate professor at Harvard Business School, said there is bipartisan support in Congress to make selling to staff easier. "I don't think a week goes by where I don't talk to an owner who is looking to sell their business," Rouen said. Harvard Business School research indicates employee ownership often appeals to owners concerned about employees after a sale.