Retirement an issue for young and old

Our economy, particularly in the rural areas, will be facing a significant challenge in the very near future.

It is evident that our young are leaving and our current business owners are looking longingly toward a time in which they can retire.

This exodus of younger skilled, educated individuals has left a significant void in our economic potential. However without employment or business opportunities these citizens have few options.

Further federal equalization payments are linked to population. A decline in numbers means a decline in provincial revenues, which will affect government services and programs. Rather than wait and see what happens, perhaps we should examine this now.

There is significant empirical data to indicate that once our youth leave to acquire training they rarely return until they retire. Even at retirement it has been documented that less than a quarter ever resettle in their home community.

According to the Government of Canada, Rural Secretariat Website: "Most Individuals who move out of rural areas generally experience higher earnings growth than their counterparts who stay. However, it remains an open question in which direction the causality works: is the higher earnings growth the result of the migration process itself or does it reflect the possibility that people with higher earnings growth potential are more likely to become movers?".

Is there a way to encourage some of our young to return and get involved with existing businesses so that they can, in the transition, maintain that business?

Anecdotally we know that a large number of small businesses are for sale in our area. It is disconcerting when you start to count the actual closures or businesses for sale in a particular area. This is just a start.

The reality is that 71 per cent of small business owners in Nova Scotia will be at the traditional retirement age in the next 10 years. Further, two thirds of these businesses do not have an actual transition plan. It is estimated that over two million jobs will be affected by transition in the next five years. The trade and professionals skills that are necessary to maintain a healthy economy will also be lost as the ‘baby boomers’ retire.

There are some programs and strategies that could be useful.

The Digby Area Board of Trade will be hosting a Business Transition Information Session on Feb. 15 at 5:30 p.m. at the Rose Bowl in Digby. Harry Cook, Senior Manager BDC Consulting, and Donnie Crowell, Account Manager BDC Financial Services, will be presenters.

This introductory session will provide invaluable knowledge, useful tips and essential guidelines in preparing for business transition. They hope that the session will help the audience gain an understanding of the impact of transition/retirement on Canada’s economy; the obstacles to transition for owners and successors; real and perceived sources of funding; key stages and actions needed to successfully achieve transition; preparing your business for transition, and the value of this planning.

This session is open to all who are interested.