The author, John Marek, is executive director of the Anson Economic Development Partnership.
What is the best age to start a new business? That number may be higher than you think.
When we think of entrepreneurs, we typically envision someone relatively young, generally in their 30s or early 40s, and many successful businesses have been founded by people in that age range. But a recent study shows that businesses started by people over the age of 50 are nearly three times more likely to succeed than those started by people under the age of 50. Seventy percent of these “silver startups” survive at least five years, compared to 28 percent of businesses started by those under 50.
The reasons for this should be fairly clear: older entrepreneurs have typically accumulated more wealth, making their businesses better financed; older entrepreneurs often have a better-developed network of friends and associates they can rely on for assistance and as customers; and older entrepreneurs have more business experience, as a rule, than their younger counterparts.
Of course, there are a few obstacles, too. While entrepreneurs in their 50s or 60s are hardly “decrepit,” they often lack the stamina of and have more health concerns than entrepreneurs in their 30s or 40s. This can be a major concern relative to health insurance, as Medicare eligibility doesn’t kick in until 65. While a 30-year-old entrepreneur might reasonably be willing to risk going a year or two without health insurance, that’s a tougher calculation for someone in their late 50s, when the odds of developing a chronic condition are much higher. Older entrepreneurs also have less time to recover from a financial failure and can face ageism in a society that still prioritizes youth.
Starting a business isn’t for everyone, and I think that bar probably rises a little as we age for these reasons. Still, older Ansonians should consider entrepreneurship as a legitimate opportunity if:
• You’re facing forced retirement, but aren’t ready to retire.
• You have a great idea and always wanted to start your own business.
• You would like to supplement your fixed income.
• You want control over what you do.
• You want to find new purpose.
If any of these apply to you, give me a call and let’s talk about it. AnsonEDP offers “bootstrap” startup grants to entrepreneurs of all ages, and we have identified several niches which would be perfect for an older businessperson, including an upscale work boot and clothing outlet, fiber arts store and specialty foods retailer.