Later for the Rocker

If you are full of energy and do not plan to retire anytime soon, consider entrepreneurship. Starting a business is not for the faint of heart. It is full of challenges, risk of loss, and the real possibility of failure. But if sitting on the porch sipping drinks is not your cup of tea this may be the retirement hack for you. More and more seniors are tossing their hats into the business arena, some out of necessity, others out of a sense of adventure. Whatever the motivation, senior entrepreneurs are more successful than most when starting a new business.

Age is More than just a Number

A sixty-year-old who starts a new business is three times more likely to succeed than their thirty-year-old peer, according to a research paper published in the journal American Economic Review: Insights in "Age and High-Growth Entrepreneurship.” Baby boomers (57 to 75 years old) account for half of small business owners, compared with seven percent for Millennials (ages 26 to 41), according to Guidant's Financial 2022 Small Business Trends survey. The U.S. Census's latest Annual Business Survey reports there are more business owners ages 50 to 59 than any other age group. It seems the older you are the greater the likelihood of success. Mature entrepreneurs’ knowledge, experience, expertise, and well-established networks can give them a competitive edge in the marketplace.

Forget What You Heard

“Young people are just smarter” – Mark Zuckerberg. Youth as a positive indicator of entrepreneurial success is a common misconception. The public and investors hold the mistaken belief that successful entrepreneurs are younger, twenty–thirty years old. But, contrary to popular belief the most successful are middle-aged. Even considering high-tech start-ups, the average age of the founders of the fastest-growing new firms is forty-five, not twenty or thirty-something. Experience in a specific industry is a greater indicator of success than age. This refutes the common belief that youth is a primary indicator of successful entrepreneurs. A well-known example is Harland David Sanders, better known as “Colonel Sanders,” who franchised Kentucky Fried Chicken when he was sixty-two. The fact is older entrepreneurs perform better than younger founders.

Nobody Gets a Pass

Funding is a challenge for most entrepreneurs. Being a more mature entrepreneur does not translate into easier access to capital. You will not magically be granted funding simply because you are older. You will face the usual challenges entrepreneurs encounter, with a few extra challenges added in. Ageism can be a factor for instance. Your experience and wisdom may be overlooked, and your age is considered a liability. Ageist stereotypes affect individuals and communities because they hinder economic growth by discounting the potential of seniors. To combat this prejudice, the more mature entrepreneur uses wisdom, skills, and experience to overcome this and all other hurdles. You will still have to research funding options. Look for grants, loans, network, and seek out angel investors to find organizations and individuals that specialize in funding senior entrepreneurship.

Success Indicators

Senior entrepreneurs who have created extremely successful businesses worked in their industry before starting their companies. Industry knowledge and experience are prerequisites for entrepreneurial success. Your understanding of your industry makes it possible to create innovations that advance the field, filling an entrepreneurial void, and creating value. High performers leave companies to start their own because they believe they can do it better. The stage of life you are in is less important than your mindset when determining entrepreneurial success.

How They Do It

The mature entrepreneur goes to their contacts for advice and collaboration. When evaluating risk, they consult with peers, mentors, and industry insiders. They stay informed about their industry by attending conferences, and networking events. They keep aware of the latest technologies and use social media and digital marketing to reach the largest audience possible. Using their experience and networking, they find entrepreneurial gaps in the market place and fill them. Maturity, skills, wisdom, and expertise are leveraged to give a competitive advantage.

Conclusion

Some seniors choose the alternative retirement strategy of starting a business instead of retiring. Entrepreneurial success is not guaranteed for the mature entrepreneur, but it is more likely. Senior entrepreneurs are an underutilized resource. We must lobby the government to create policies, programs, and more funding options for seniors with viable start-ups. Their contributions to society are needed now more than ever. We make it happen. It can be done; economic necessity demands it. Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has. – Margaret Mead

References:

1. "Age and High-Growth Entrepreneurship," American Economic Review: Insights.

2. Guidant Financial 2022 Small Business Trends survey.

3. U.S. Census Annual Business Survey.