Less than one in ten businesses have a formal succession plan in place
A snapshot survey by Employee Ownership Ireland highlights a clear gap between thinking about succession and taking practical action.
reported having a formal written succession plan in place.
said they had considered succession planning.
had been operating for more than ten years.
had heard of employee ownership.
A snapshot survey of businesses across Northern Ireland has revealed a significant gap in succession planning, with less than one in ten respondents reporting that they have a formal written succession plan in place.
The survey, carried out by Employee Ownership Ireland to coincide with Employee Ownership Day, found that while 67% of respondents had considered succession planning, only 8% had developed a documented plan for the future of their business.
The findings raise concerns for Northern Ireland’s business community, particularly as many of the respondents are long-established businesses. More than 70% of those surveyed have been operating for over ten years, yet fewer than one in ten have a formal written succession plan in place.
Why this matters
Succession planning is not just about retirement, sale or buyout.
It is about protecting the future of a business, safeguarding jobs, retaining skills and making sure successful companies can continue to contribute to the economy for years to come.
For family-owned businesses and SMEs, the question of what happens next can shape more than ownership. It can shape employment, local supply chains, community confidence and long-term business resilience.
“It is encouraging that many business owners are thinking about the future. There is however, a clear gap between awareness and action.”
Karen Maguire, Chair, Employee Ownership IrelandKaren Maguire said the results should serve as a timely reminder for business owners to begin planning earlier.
She said many of the businesses who responded have been operating successfully for more than a decade. They provide local employment, contribute to their communities and have built strong reputations. Without proper planning, there is a risk that valuable businesses, jobs and expertise could be lost.
Employee ownership as part of the succession conversation
Awareness of employee ownership was relatively high, with seven in ten respondents saying they had heard of the model.
However, only a small number described themselves as being very well informed. This suggests there is still a significant opportunity to improve understanding of alternative succession options.
More than half of respondents said they would like to learn more about employee ownership as a succession option.
Fully funded feasibility studies are available
Employee Ownership Ireland is supporting businesses to explore whether employee ownership could be a suitable succession option.
Through Department for the Economy funding, eligible businesses can access fully funded feasibility studies to help them plan ahead, understand their options and make informed decisions.
“Locally owned businesses are at the heart of our economy and our communities, and planning for the future is essential to protecting that strength.”
Dr Caoimhe Archibald, Economy MinisterThe Economy Minister said the research highlights a clear gap between recognising the need for succession planning and taking practical steps to put plans in place.
She said that without planning, there is a real risk to jobs, skills and long-term business resilience.
The first stage of wider research
Employee Ownership Ireland intends this snapshot survey to be the first stage of a wider programme of work.
EOI will now engage with local universities and partners to undertake more detailed research into succession planning across Northern Ireland.
The aim is to build a clearer picture of the opportunities and challenges facing business owners.
Key findings
- Employee Ownership Ireland surveyed 100 businesses across Northern Ireland during 2026. One response was incomplete.
- 67% of respondents said they had considered succession planning.
- 71% of respondents had been operating for more than ten years.
- 41% reported taking no formal action in relation to succession planning.
- Only 8% reported having a formal written succession plan in place.
- 71% of respondents had heard of employee ownership.
- More than half of respondents said they would like to learn more about employee ownership as a succession option.
Start the conversation early
Employee Ownership Ireland is encouraging business owners to begin succession planning discussions well in advance of any intended transition.
Employee ownership will not be right for every business. But where it is relevant, it can give owners another route to protect legacy, reward employees and secure the future of the company.
Speak to Employee Ownership Ireland
If you are a business owner, adviser or stakeholder and would like to learn more about employee ownership, you can contact Employee Ownership Ireland.
