Roughly half – 43 percent – of small business owners, with sales between $100,000 and $10 million, do not plan to retire. A new Economic Pulse Survey for the third quarter of 2012, by Barlow Research, also found that among people who said they would retire, the average is now 67 years old.

Of small business owners who said they intend to retire, 72 percent plan to still work part-time after they retire.

“Small business confidence has once again declined, but the negative effects have yet to reach the banking industry. If confidence remains negative, we need to be prepared for a further decline in loan demand. Business owners may not retire, but they will continue to retreat from risk,” said Bernie Kuechler, project director for Barlow Research.

The report also found that small business and middle market confidence in the U.S. economy fell in the third quarter of 2012 and small business expectations for the financial condition of their company fell 14 points.

Small business expectations for employment and capital expenditures returned to negative territory and those surveyed said they expect a lower need for additional credit moving forward. Fewer are planning to apply for additional credit than in the previous quarter.

Of those surveyed, one in 10 small businesses said they have switched their primary financial institutions.

Barlow Research Associates, Inc., founded in 1980, provides research and consulting services to the banking industry in the U.S. and overseas with specialties in custom research, strategic consulting and syndicated research programs for small business, middle market and business Internet banking.