You Might Be Surprised by the Facts About Becoming an Entrepreneur After 50!
Achieving financial success later in life is much more common than you might think.
Can you discern which of the following statements are true and which are mere conjectures?
Most entrepreneurs worldwide are in the 55 to 64 age range.
According to the Global Entrepreneurship Monitor (GEM), the highest rate of entrepreneurship globally has shifted to the age group between 55 and 64 years.
Moreover, entrepreneurial activity among individuals over 50 has increased by more than 50% since 2008.
In the United States, there are 34 million older adults who want to start a business.
Temporary Jobs Are Not the Main Source of Growth
A study conducted by the University of Michigan revealed that experienced entrepreneurs are two to three times more likely to launch a new venture than to engage in the gig economy.
Companies like Uber, Lyft, and other contractor organizations may need to worry as much about talent acquisition as about rising competition.
Significant Success Is More Likely After 50
You often think of prominent entrepreneurs who were young when they started.
For example, Mark Zuckerberg was still in college when he created Facebook.
Elon Musk made his first millions in his 20s before launching the company that became PayPal, and later embarked on Tesla.
Bill Gates was only 23 when he founded Microsoft.
However, it turns out they are exceptions to the rule.
Late-life success is much more likely.
The study “Age and High Growth Entrepreneurship,” conducted by MIT in collaboration with the US Census Bureau, analyzed 2.7 million people who started companies between 2007 and 2014. They found that a 50-year-old is twice as likely to achieve significant success—defined as a company in the top 0.1% of performance—as a 30-year-old.
“These findings emphatically reject common hypotheses that emphasize youth as a fundamental characteristic of successful entrepreneurs,” the study authors state.
Business Success After 60 Is More Likely Than at 30
The MIT study also revealed that a 60-year-old startup founder is three times more likely than a 30-year-old founder to launch a successful startup—and even more surprisingly—they are 1.7 times more likely to found a startup that ranks among the top 0.1% of companies.
Success seems to increase with age.
A 50-year-old startup founder has 2.2 times more chances of founding a successful startup than a 30-year-old.
A 40-year-old startup founder has 2.1 times more chances of founding a successful startup than a 25-year-old.
A 50-year-old startup founder has 2.8 times more chances of founding a successful startup than a 25-year-old.
Companies Owned by Individuals Over 50 Are More Likely to Fail
A study reveals that five years after starting, 70% of ventures established by entrepreneurs over 50 are still in operation, compared to only 28% of ventures launched by younger entrepreneurs.
These numbers clearly indicate that more people desire to open a small business than to retire.
A survey conducted by UPS found that 54% of respondents would prefer to start a small business over retiring, as long as money or health is not a limiting factor later in life.
Moreover, nearly two-thirds of Americans dream of being their own boss.
Contrary to Common Belief, Productivity Increases with Age
As highlighted by Gary Burtless, a senior fellow in economic studies at the Brookings Institute, “if worker productivity were affected by the increasing presence of older workers in the workforce, it would be evident in the earnings statistics of the elderly themselves. In fact, the average worker between 60 and 74 now earns a higher hourly wage than workers between 25 and 59. The wage premium enjoyed by older men and women has been steadily increasing since the beginning of the century.”
Another interesting aspect is that highly educated people are more likely to continue working compared to those with less education.
Older Americans who remain active in the workforce after age 62 are much more likely to have received post-secondary education compared to workers who retire at younger ages.
Older Entrepreneurs Start Businesses Not Just Out of Financial Necessity
According to a survey by Guidant Financial, most (42%) entrepreneurs over 50 report that they launched their businesses out of passion and not out of financial need.
Most Small Businesses in the United States Are Owned by People Over 50
The Guidant Financial study reveals that 54% of small business owners in the United States are over 50 years old.
It is interesting to analyze the specific breakdown:
33% of small business owners are between 50 and 59 years old.
17% are between 60 and 69 years old.
4% are over 70 years old.
Given these data, the question arises: why are older entrepreneurs so successful?
There is no clear consensus on the reasons for the success of older entrepreneurs. Several theories have been proposed, including:
Execution of Ideas: Young people may have great innovative ideas, but older entrepreneurs have an advantage in execution. Their experience and skills developed over the years can make them more efficient at turning ideas into reality.
Connections: As you reach 50 and beyond, you accumulate a long history of relationships and connections. This network of contacts can be crucial for the growth and development of older entrepreneurs’ businesses.
Confidence: The experience gained over the years brings with it a sense of confidence. Having faced challenges and overcome obstacles in the past gives older entrepreneurs a resilient mindset and a belief in their ability to face and overcome adversities.
Access to Capital: Older individuals generally have more solid and established credit histories. This access to capital can facilitate the start and growth of a successful business.
Given these considerations, if you are thinking about starting a business and believe that your advanced age may be an obstacle, the data suggest that your chances of success are in your favor.
So, don’t let age hold you back and move forward with confidence.
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