Wales is facing a succession planning gap that could put thousands of locally owned businesses, jobs and community value at risk, a new report from Economic Intelligence Wales has warned.
It calls for a single, visible national support offer to help SME owners plan earlier, access practical guidance and prepare for ownership transition before it becomes urgent.
The report, Small Business Ownership Succession Planning Strategies, published in July and written by Mark Lang, Max Munday, Annette Roberts, and Neil Roche of the Welsh Economy Research Unit at Cardiff Business School, explored the opportunities and challenges facing Wales' SME community as business owners approach retirement or consider transferring ownership.
Its findings reflect a wider challenge facing businesses across Wales and the UK. A 2025 study by Hymans Robertson Personal Wealth showed that only 34% of family business owners in the UK have a formal succession plan in place, while analysis by ExitRadar, based on 2025 data, found that more than 800,000 UK companies have directors aged over 60 with no succession plan. That same study estimates that more than 90% of small businesses brought to market never complete a sale.
The Welsh picture is equally concerning. Previous research referenced in the EIW report found that just 16% of Welsh SMEs had considered succession planning in the longer term, while 47% of family-owned Welsh SMEs had no formal succession plan in place. The report concludes that succession planning remains significantly underdeveloped across the Welsh SME landscape.
The report recommends a more coordinated support ecosystem for succession planning in Wales, centred on a single, visible and accessible national support offer to help business owners understand their options, access specialist advice and finance, and begin planning much earlier.
Adam Price, Welsh Government Cabinet Minister for Enterprise, Connectivity and Energy, said:
“This research by Economic Intelligence Wales 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.
“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.”
Max Munday of the Welsh Economy Research Unit said:
“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. 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.”
Since its launch in 2017, the Development Bank of Wales has funded 379 succession deals with £157 million, helping businesses across Wales remain locally owned while safeguarding jobs and creating opportunities for future growth.
Recent examples include the management buyout of Merthyr Tydfil-based Design & Supply, supported through Development Bank investment, which enabled the management team to take ownership of the business while securing its long-term future. The Development Bank also supported the transition of logistics business Lloyd & Gravell into employee ownership, helping secure the future of the company while giving employees a direct stake in its success.
Giles Thorley, Chief Executive of the Development Bank of Wales, said:
“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.
“Since 2017, we have funded 379 succession deals with £157 million, supporting management buyouts, employee ownership trusts and other succession 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.”
Economic Intelligence Wales is a collaboration between Cardiff Business School, Bangor Business School, the Enterprise Research Centre, the Office for National Statistics and the Development Bank of Wales. The partnership provides independent insight into the opportunities and challenges facing the Welsh economy.
