LANSING, MI (WOWO) A growing number of Michigan business owners are reaching retirement age, creating uncertainty for communities across the state. About 23 percent of Michigan proprietors are 65 or older, with at least half of small businesses operating without formal succession plans. Experts warn this could lead to closures or out-of-state buyouts, affecting local economies and community engagement. Mary Rajasekhar, who ran Olivet Book and Gift in Alpena for 35 years, closed her store last spring after finding no heir apparent to continue operations. Similar closures are appearing across Michigan, as aging owners step back without successors in place. Doug Lepisto, co-founder of Sleeping Giant Capital, says the impact depends on community business types. “Communities with many small, family-run shops will lose those businesses, and leadership or ownership may move elsewhere,” he said. Despite openings outpacing closures statewide, the gap is narrowing. Between 1994 and 2024, business openings increased 31 percent in Michigan, while closures grew 45 percent. Local businesses often play key roles in community events, sponsorships, and boards. Their loss could reduce community investment and alter local decision-making. Some family businesses have succession plans, such as Ed Rehmann and Sons in Chesaning. The store, owned by Rob and Nancy Rehmann, will pass to their son Marc, the fourth generation in the family to run the business. The Rehmanns continue to contribute to community programs and school initiatives, demonstrating the impact succession planning can have on preserving both local business and community support. Jim McLain of the Small Business Development Center at Grand Valley State University stresses the importance of planning early. “Business owners should consider their exit strategies as soon as they start,” he said. Without planning, many businesses may sell to out-of-state investors or close, removing long-standing economic and social support from Michigan communities. The post Michigan business owners face wave of retirements appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less