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Money April 2014

Aid for Age

Senior Entrepreneurs Outnumber Younger Business Start-ups

By Tait Trussell

You’re never too old to start a business. People 55 to 64 have a higher rate of entrepreneurial activity than those age 24 to 35.

The largest contingent of entrepreneurs is made up of seniors. “The older you are, the more likely you are to be an entrepreneur,” said Edward Rogoff, professor of entrepreneurship at Baruch College’s Zicklin School of Business, and co-author of  The Second Chance Revolution: Becoming Your Own Boss After 50.

So, what does it take to be an entrepreneur?

It probably starts with creativity. Does a lack of results or an observed need motivate you to try a new and better method or approach? Do you have a talent, proven creativity, and persistence? Do you look at obstacles as hindrances or opportunities? Creativity is necessary to carry out good works that lead to prosperity.

Tom McDonnell, president of the Kaufman Foundation, which promotes entrepreneurship, said in a recent talk: “With economic indicators pointing in contradictory directions, we need to recharge our economic engine of entrepreneurship. Some worrying trends are underway.

“New business formation — which fell steeply during the recession — has not yet recovered, and had been flat or falling for a number of years prior to the Great Recession. Furthermore, the types of new businesses being created over the last several years have not necessarily been the kind of dynamic, high-value firms that generate large numbers of new jobs and groundbreaking innovations. We need business builders, not business flippers.

“Many questions obviously remain regarding these challenges.” Our “accompanying report is really just the launch pad for a new effort the Kauffman Foundation is kicking off called ‘America's New Entrepreneurial Growth Initiative.’ Through research, conferences, and work with partner organizations, “we are going to focus on addressing these challenges and helping devise the proper policy framework that can stimulate an era of renewed entrepreneurial growth….”

According to SmartBizTrends, “The new face of startups is a senior citizen. Here are some tips:

  • You’re never too old to start a business. People 55 to 64 have a higher rate of entrepreneurial activity than those age 24 to 35.
  • There’s no idea too strange to find success. Building a business ignited by your passion fuels your success.
  • Seek out people and resources that can encourage you.
  • Having a business no longer requires an office or storefront. You can set up an online store with sites such as Ebay and BigCommerce to sell your product online.
  • As you grow, staff with freelancers. This helps you manage costs.
  • Be innovative about your sources of funding. Consider grants and contests. An 89-year-old grandmother used Kickstarter to fund her decorative walking cane business. The Purpose Prize awards $100,000 to entrepreneurs who begin a business after age 60.
  • An Internet presence is a must. You can boost your business by getting a website or a blog. More than 90 percent of Internet users look for local products online.
  • Think about going back to school. You can now learn from home with tele-seminars, podcasts, and Ebooks.
  • A smart phone or tablet gives you a pocket office. You can contact a customer, or receive an order.
  • Use word-of-mouth marketing, Look for social media workshops sponsored by the Small Business Administration or the Small Business Development in your region.

These tips may well send you off on your plan to be an entrepreneur.

An interesting side note comes from the aviary world: The older Whistling Swan uses initiative by taking the lead in the flock’s “V” formation. In that formation, the flock can fly 30 percent farther than if each swan flew alone – an illustrative case of the older one creatively leading, even in the bird world.                

 

Tait Trussell is an old guy and fourth-generation professional journalist who writes extensively about aging issues among a myriad of diverse topics.

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