Nearly 60 percent of wealthy business owners give President Donald Trump and many of his policies a high approval rating, and 46 percent indicate that their confidence in the administration has increased since the presidential election, according to a survey by Wilmington Trust.
But the survey also showed that many of the business owners are concerned about external threats that could hurt their business—such as recession (39 percent), U.S. trade policy (36 percent) and inflation (33 percent).
Additionally, business owners ranked the political environment, rising health-care costs and cybersecurity as other top threats to their personal goals.
Wilmington Trust's inaugural quarterly Business Owners Outlook, subtitled “Risky Business,” focused on 1,000 privately held business owners with at least $10 million in revenue across the U.S. The report offers a checklist of strategies for a well-planned business owner, guidance, and wealth and tax planning insights.
And though the survey found that an overwhelming majority (98 percent) of respondents are confident in achieving their future business and personal goals, it also showed that four in 10 business owners admit they are worried that their business and personal goals are not well integrated.
The survey noted that while the business owners have been confident in today’s pro-business political environment, extended economic expansion and record bull market, risks are emerging that they need to address in order to sustain and pass on the success they have achieved.
“Business owners, by their nature, tend to be self-assured,” said Tony Roth, chief investment officer of Wilmington Trust Investment Advisor Inc., in a statement. “Considering today's pro-business political environment and the record-setting economic expansion, it is not surprising that they often are wearing rose-colored glasses when looking toward their future.
“But this optimism may be failing to price in the potential impact of an extended trade war, an inevitable recession or a change of power in Washington,” he added. “Our survey shows that while business owners have identified these threats, they generally have not begun to prepare for the impact on their business and personal wealth.”
To Roth’s point, the survey found that while 55 percent intend to pass on the business to their children, nearly half (46 percent) haven't fully discussed this with their heirs. Further, 65 percent of business owners are married, yet they have no transition plan in place should one of the spouses die or they decide to divorce. And 68 percent say they have a business succession plan but only 18 percent have written and communicated it to stakeholders.