Gen X Is Riding the Silver Tsunami and Redefining Small Business Ownership
In typical Gen X fashion, this cohort is quietly riding the Silver Tsunami and now stands as the largest group of small business owners and buyers, according to BizBuySell’s most recent Insight Report.
For years, the narrative around small business ownership has centered on the “Silver Tsunami” — the wave of Baby Boomer entrepreneurs retiring and selling their businesses. While that trend has shaped the market, new data suggests the tide is shifting. Today, Gen X and millennials are not just participating in the small business economy, they’re leading it.
Generational Shift: The Silver Tsunami Evolves
BizBuySell surveys the small business community quarterly for the Insight Report, a nationally recognized economic indicator that tracks the health of the U.S. small business economy. The latest survey reveals a generational shift underway.
Baby boomers reached retirement age in 2011 and just hit “peak 65” in 2024, when the largest surge of Americans turned 65. Over the past decade, boomers have been exiting and passing on their Main Street businesses. BizBuySell has tracked boomer presence in the market, and has seen a 20% decrease since 2020. While opportunities remain for experienced owners to transition businesses to a new generation, the landscape is already shifting.
Gen X Leads the Charge in Small Business Ownership
Gen X (born 1965- 1980) and millennials (born 1981-1996) now make up over 70% of business owners and over 75% of buyers looking to enter small business ownership. This generational momentum is accelerating alongside the growing influence of the Entrepreneurship Through Acquisition (ETA) movement. Business brokers continue to report an influx of buyer inquiries, attributing the increase to everything from Ivy League MBA entrepreneurship programs to podcasts and social media influencers demystifying business ownership for corporate professionals.
This data shows that Gen X is the backbone of both ownership and acquisition, while millennials are emerging as the next wave of entrepreneurs.
Corporate Refugees Fuel the Buyer Surge
This generational shift coincides with a change in who is buying. According to BizBuySell’s data, 40% of buyers identify as “corporate refugees” — professionals leaving traditional employment to pursue business ownership. These entrepreneurs aren't necessarily starting from scratch; they’re bringing corporate skills, capital, and a desire for autonomy to established Main Street businesses.
The ETA movement has given this cohort a playbook, showing that buying a cash-flowing business can be less risky than starting a business from scratch, and more rewarding than climbing the corporate ladder. Combined with Gen X’s natural skepticism of corporate promises and millennial’s desire for purpose-driven work, this shift is reshaping the future of entrepreneurship.
What Sellers Need to Know: Prepare for the Next Generation of Buyers
The good news? The market is healthy, with small business transactions on BizBuySell up 8% from Q3 2024. Today’s buyers are motivated and sophisticated. They’re prepared to conduct thorough due diligence and expect clean financials, documented systems, and transferable operations.
Owners looking to exit in the next three to five years should start preparing now:
- Benchmark your business against industry standards.
- Document systems and processes to show the business can run without you.
- Clean up financials and separate personal from business expenses.
- Build transferable value through customer diversification, employee development, and operational efficiency.
The Silver Tsunami isn’t over, but it’s no longer just about boomers. Gen X and millennials are reshaping Main Street with fresh energy, strategic thinking, and a desire for autonomy. For sellers, the message is clear: prepare your business now to meet the expectations of a new generation of buyers. The wave is here, make sure you’re ready to ride it.