A new report from Economic Intelligence Wales warns that a widespread lack of ownership succession planning among Welsh SMEs could jeopardise indigenous firms and thousands of jobs. The research, titled Small Business Ownership Succession Planning Strategies, calls for a national support system to help owners transition earlier.
According to the report, authored by Mark Lang, Max Munday, Annette Roberts, and Neil Roche, the problem is acute across Wales and the UK. A 2025 study by Hymans Robertson Personal Wealth found that only 34% of UK family business owners have a formal succession plan. Meanwhile, ExitRadar data shows more than 800,000 UK companies have directors aged over 60 with no succession plan, and over 90% of small businesses brought to market never complete a sale.
Welsh SMEs particularly unprepared
In Wales, the situation is even more concerning. Previous research cited in the report indicates that just 16% of Welsh SMEs have considered succession planning in the longer term, while 47% of family-owned Welsh SMEs have no formal succession plan in place. The authors conclude that succession planning remains significantly underdeveloped in the Welsh SME sector.
The report's key recommendation is a single, visible, and accessible national support system to help business owners understand their options, access specialist advice and finance, and begin planning much earlier.
Government and expert reactions
Adam Price, Cabinet Minister for Enterprise, Connectivity and Energy, said: "This research highlights the importance of helping business owners plan for the future and ensuring they can access the right support at the right time. Too often, succession planning is seen as something to consider later, when in reality early planning can be critical to securing jobs, investment and long-term business success."
Price added: "We want to create a simpler and more visible business support system that helps enterprises at every stage of their journey. That includes providing clearer pathways to advice, finance and specialist support for business owners considering succession, management buyouts, employee ownership or other transition options. By bringing support together and making it easier to navigate, we can help more Welsh businesses remain locally rooted, safeguard quality jobs and continue contributing to the growth and prosperity of communities across Wales."
The cost of delay
Professor Max Munday, co-author of the report, warned: "Too many business owners, busy with the day-to-day challenges of running their businesses, risk leaving succession planning until the last minute, putting years of their hard work and their critical economic value at risk. The evidence is stark. Hundreds of thousands of businesses across the UK are approaching a critical ownership transition without a formal plan in place. Many owners assume they will simply sell when the time comes, but the reality is that most businesses brought to market never complete a sale."
Munday emphasised: "This report demonstrates the importance of ensuring that business owners have access to the advice, support and funding they need to plan for the future."
Succession funding in action
Giles Thorley, chief executive of the Development Bank of Wales, highlighted the impact of targeted support. "Wales has thousands of successful locally owned businesses that are central to jobs, supply chains and communities, but too many are approaching ownership transition without a clear plan. Successful transitions do not happen by accident. They require early planning, good advice and access to appropriate finance. Unless support is simple to find and easy to navigate, otherwise strong businesses can struggle to realise their value or secure their future."
Thorley noted that since 2017, the Development Bank of Wales has funded 379 succession deals worth £157 million, supporting management buyouts, employee ownership trusts, and other routes that help businesses remain strong, independent, and embedded within their communities. "We have seen first-hand how succession funding can protect jobs, preserve local ownership and create the platform for future growth. A single, visible national support offer, backed by practical guidance and targeted awareness, would help more Welsh SME owners plan earlier and give viable businesses the best chance of remaining rooted in Wales for the long term."
Call for national action
Economic Intelligence Wales, a collaboration between Cardiff Business School, Bangor Business School, the Enterprise Research Centre, the Office for National Statistics, and the Development Bank of Wales, provides independent insight into the Welsh economy. The report's authors urge policymakers to act on their recommendations to safeguard the future of Welsh businesses and the jobs they support.
