Survey highlights a chronic lack of succession planning.

 

Nearly one in three Australian small business owners plan to retire within five years, but only 16 per cent have a documented succession plan, according to new research commissioned by online design and marketing platform VistaPrint 

 

VistaPrint surveyed 510 Australian small and medium business owners in early 2026, found 45 per cent of them considering an exit have no succession or sale plan at all.

 

A further 25 per cent say they have never even considered what happens to their business when they leave.

 

Applied to the Australian Small Business and Family Enterprise Ombudsman's figure of 2,724,326 small to medium businesses nationally, the data suggests tens of thousands of businesses could close not because they are failing, but because their owners have no plan to hand them on.

 

VistaPrint has labelled the trend a "succession cliff" at a time when small business insolvencies are at near-record highs since mid-2025.

 

"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," Marcus Marchant, CEO of VistaPrint, said.

 

"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,” he said.

 

The research suggests a parallel and less visible threat to the sector involving solvent, profitable businesses closing simply because no transition pathway exists.

 

Forty per cent of respondents say they have already experienced a sudden or unplanned departure from a previous business due to health crises, financial pressure, burnout or market shifts.

 

However, one in five of those planning to retire have not discussed their exit with anyone - neither family, staff nor an adviser.

 

Despite the succession gap, 63 per cent of owners surveyed say they want their business to continue beyond them, suggesting the desire to transition exists even where the planning does not.

 

About the research

This research was produced by VistaPrint, based on an online study conducted by Pureprofile Research of 510 Australian small and medium business owners from 28 January to 2 February, 2026. This included 157 owners who intend to retire in the next five years.

Photo: Reality HR