Got an itch to start a new business? You’re not alone . . . you’re part of another ‘boom’ or movement, of sorts.
According to the Kaufman Foundation, early boomers are the fastest growing segment of new business start-ups – a 16 percent increase, to be exact. That works out to 10,000 new businesses every month. Maybe it’s a combination of circumstances . . . 401K shrinkage, a wealth of experience, some money poked away for a rainy day or maybe we just finished the honey–do list and are getting bored of that thing called retirement.
The trend is so strong that the Kauffman Foundation predicts a sustained entrepreneurship boom, not in spite of the country’s aging workforce but because of it.
Other researchers agree. “The older you are, the more likely you are to be self-employed. I don’t think it’s new, but I do think it’s growing,” says Edward Rogoff, the Lawrence N. Field Professor of Entrepreneurship at Baruch College in New York. “Their chances of finding traditional employment are restricted, so more of them get pushed into entrepreneurship. Or they just find it attractive.”
As entrepreneurs, boomers have a lot going for them – including a career’s worth of accumulated knowledge about an industry, plus a network of people to tap as financiers, suppliers and customers. Recession or not, they’re also more likely to have retirement or other savings to fund a new venture. In many cases, it can become the perfect storm.
As with most things, it won’t necessarily be easy. Older entrepreneurs face obstacles their younger counterparts needn’t worry about – especially time. “If you’re starting a business as a way to supplement your income, you can’t wait the typical five years or more that younger entrepreneurs are told to expect before turning a profit,” Rogoff says.
So, boomers, if you’ve got the itch, go out and scratch it. You’re not alone and you could find some unexpected company while you’re out there.
One resource…The Southwest Initiative Foundation’s Paul and Alma Schwan Aging Trust Fund has a program called Encore Entrepreneurship dedicated to nurturing older entrepreneurs through networking, training and in some cases financing.
Greg Jodzio is an Encore Entrepreneur. He is retired from his first career as a sales executive and is now spending his time growing his newest venture, Red’s Hot, LLC, and providing business training and assistance to other Encore Entrepreneurs.