ANCA, CBIT gauge impact of retiring small-biz owners

SARANAC LAKE — What is the potential economic impact of the retirement of small-business owners across Northern New York? The Adirondack North Country Association (ANCA) and its North Country Center for Businesses in Transition (CBIT) are working with other organizations and initiatives across the Northern Border region to better understand the answer to that question. The Northeast Transition Initiative (NETI) sought input from business owners about their concerns and experiences with succession planning and ownership transitions. People who own and operate businesses in the Northeast — including ANCA’s 14-county service area in Northern New York — were invited to support the research effort by completing a short online survey, which was due Aug. 31. Only the aggregated, anonymous data will be made public, ANCA said. Lauren Richard, ANCA’s small-business program director, said survey responses will help service providers, civic leaders, and policy makers “better understand the scope and scale of the wave” of business owners exiting the workforce in the next several years, the challenges it poses for local communities, and its potential impact on the region’s economy. “This study is taking a broader look at how the loss of existing businesses might affect communities and workers across rural areas like New York’s North Country, while helping us support more ownership transitions,” Richard said in the ANCA announcement. “There is no one-size-fits-all model for business ownership. We want to encourage retiring owners to consider different options by providing a variety of tools, resources, and professional connections to support them in their business transition journey.” As a wave of baby boomers prepares to give up the reins of their businesses in the next several years, their absence from the business community could result in the loss of jobs and services for the local communities they serve, ANCA contends. Many business-support organizations have strong expertise in growing businesses, but they aren’t always equipped to provide assistance for those looking for succession-planning support. Employee ownership, for example, is a proven strategy to preserve critical businesses and jobs and provide wealth-building opportunities for workers “who are often left behind.”

About the organizations involved

ANCA describes itself as an independent, nonprofit corporation with a “transformational approach to building prosperity” across northern New York. ANCA’s CBIT program is guided by organizations and community liaisons across northern New York who provide technical support for businesses navigating ownership transitions. Since 2018, CBIT has provided more than 250 business owners with transition support and helped 63 North Country businesses transition to the next generation of entrepreneurs. NETI is a partnership of organizations and lenders with experience in exit-planning and ownership transitions. As ANCA put it, partners “share a common goal of equipping” small businesses with the tools, resources, and knowledge to support successful exit planning and a “seamless” transition to employee ownership. In doing so, they help preserve jobs and businesses, increase wealth-building opportunities for employees, and “ensure a more prosperous” economy across the Northeast. Questions about CBIT, NETI or the survey may be directed to ANCA staff at transitions@adirondack.org. This project is a partnership of: Cooperative Development Institute, Cooperative Fund of the Northeast, Adirondack North Country Association (ANCA), Apis & Heritage Capital Partners, Boston Impact Initiative, Democracy at Work Institute, ICA Group, Mill Cities Community Investments and Vermont Employee Ownership Center. The project is made possible through funding from Wells Fargo.