The “Great Ownership Transition” could reshape wealth for diverse entrepreneurs.

A massive shift is underway in the U.S. economy, one that could redefine who owns, builds, and benefits from American businesses. Over the next decade, millions of small and mid-sized businesses will change hands as Baby Boomer owners retire. For diverse entrepreneurs, this moment represents more than a transition, it’s a rare opportunity to access ownership, capital, and long-term wealth creation at scale.

But whether this becomes a breakthrough or a missed opportunity depends on one critical factor: access.

The Big Picture: A Historic Transfer of Wealth

According to a new report from the Milken Institute, up to $5 trillion in enterprise value will transfer ownership as nearly six million businesses transition to new leadership over the next decade.

This “succession cliff” is one of the largest wealth transfers in modern history. However, without intentional strategies, much of that value may remain concentrated, leaving diverse entrepreneurs on the outside looking in.

The report highlights a key concern: under current trends, women, Black, and Latino individuals may capture only a fraction of this wealth transfer.

At the same time, shifting investor priorities, especially among younger generations, are driving demand for inclusive capitalism, alternative investments, and impact-driven opportunities.

Key Mechanisms Driving the Transition

The report outlines several financial and structural mechanisms shaping how this transition will unfold:

• Federal funding programs like the State Small Business Credit Initiative (SSBCI), which has already deployed billions in capital and prioritizes underserved businesses
• Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), which provide capital access in underrepresented communities
• Employee ownership models, including ESOPs, which allow workers to gain equity and build wealth
• Entrepreneurship through acquisition (ETA), where entrepreneurs buy existing businesses instead of starting from scratch

Together, these mechanisms aim to expand access to capital and create more inclusive pathways to ownership.

3 Key Takeaways

1. Ownership, not just entrepreneurship, is the real opportunity

Starting a business has long been the focus, but acquiring an existing one may be the faster, more scalable path to wealth. With millions of profitable businesses up for sale, entrepreneurs can step into established revenue, systems, and customer bases.

2. Capital access is improving, but still uneven

Programs like SSBCI are designed to unlock funding for underserved entrepreneurs and can catalyze significant private investment. In fact, every $1 in SSBCI funding can generate up to $10 in private capital.

However, navigating these resources, and actually securing capital, remains a major barrier for many small business owners.

3. New ownership models are redefining wealth creation

Employee ownership and acquisition-based entrepreneurship are gaining traction as viable alternatives to traditional business ownership. These models not only preserve businesses but also keep wealth within communities and create shared economic value.

What This Means for Diverse Businesses

This moment is not just about transition—it’s about positioning.

For diverse entrepreneurs, the “Great Ownership Transition” presents three major opportunities:

1. Acquire, don’t just build

Instead of starting from zero, consider acquiring an existing business. This approach can accelerate growth, reduce risk, and provide immediate cash flow.

2. Tap into emerging capital pathways

From federal programs to community lenders and emerging fund managers, new capital channels are opening—but they require awareness, preparation, and strategy to access.

3. Leverage networks and ecosystems

Access to deals, funding, and partnerships often comes through relationships. Being part of the right ecosystem can mean the difference between opportunity and exclusion.

Final Thought

The next decade will determine who owns the future of small business in America.

The infrastructure for a more inclusive economy is being built—but it’s not automatic. It requires intentional action from entrepreneurs, investors, institutions, and policymakers.

For diverse founders, the question is no longer:

“Can I start a business?”

It’s:

“How do I position myself to own, scale, and sustain wealth in this next era?”