Almost 30 percent of small business leaders say they plan to sell, transfer or exit their businesses within five years, according to the latest Business Leaders Outlook report from Chase for Business. The survey found 29 percent of small businesses plan to transition, up from 20 percent last year.

While not considered in the survey, the finding suggests openings for younger business people and entrepreneurs will be increasing.

Overall, small businesses feel more confident in both the national and global economy, 56 percent and 44 percent, respectively, up by 14 points each compared to last year. They still feel best, however, about matters closer to home: their own company’s performance (69 percent) and their local economy (58 percent).

“Small businesses know what they’re doing, and that includes more of them planning a transition in the next five years,” said Andrew Kresse, CEO of Business Banking at Chase.

Small businesses most often cited the following top three challenges:

  • Ability to grow sales and revenue: 39 percent, down 11 points from 2015
  • Uncertain economic conditions: 31 percent, down 4 points from last year
  • Healthcare costs: 28 percent, up 6 points from last year. Now, just over half of small businesses provide healthcare coverage for employees, up 6 points from last year or up 11 points from 2015.

Updating the wish list for government

Business leaders are keeping several issues front and center:

  • Lowering tax rates: 57 percent, down 5 points from 2015
  • Reducing regulations: 39 percent, down 9 points from 2015
  • Access to capital: 35 percent, up 5 points from 2015
  • But more wish the government would focus on:
  • Improving infrastructure: 29 percent, up 6 points from last year
  • Protecting consumers’ interests: 22 percent, up 6 points from 2015
  • Cybersecurity legislation: 22 percent, up 9 points from 2015

Holding back on hiring

Fewer small businesses plan to increase full-time employees (27 percent, down 3 points from earlier this year), and part-time employees (31 percent, down 5 points from earlier this year). But the need for help with hiring has increased from previous years (14 percent, up 7 points from earlier this year) and more cite a limited supply of candidates as a challenge (15 percent, up 4 points from 2015).